Stockholm  - Swedish clothes retailer Hennes & Mauritz (H&M) said Tuesday it has signed a franchise agreement to open stores in Israel.

The deal was inked with Match Retail Ltd, a privately owned company.

The first H&M stores in Israel were likely to open in 2010, the group said in a statement.

H&M currently operates some 1,600 H&M stores in 32 countries. (dpa)