Jamie Oliver's tasty little packet

Jamie Oliver is in line for another £1million-plus advertising deal with Sainsbury's - thanks to his school dinners campaign.

The TV chef looked to have burned his bridges with the supermarket giant last month after he criticised it for selling junk food.

But Oliver's popularity has soared thanks to his drive to improve school meals and now Sainbury's is ready to perform a U-turn.

One ad industry source said: 'Sainsbury's would be mad to let Jamie go at this time when he is the nearest thing to a living saint over his school dinners campaign.

'Presumably Jamie will be able to name his price with Sainsbury's.

'If they don't continue with him he will be snapped up for another supermarket.'

Some advertising sources claim Oliver's association with the supermarket has brought the company an extra £1billion of sales and $200 million in profit.

Now, two advertising agencies - JWT and Abbott Meat Vickers - are pitching for Sainsbury's £47million contract and both have presented plans featuring the TV chef.

But just two months ago, industry insiders predicted the struggling chain was ready to axe him.

The celebrity chef appeared to make matters worse by criticising the supermarket for selling his despised Turkey Twizzlers, the high-fat food fed to pupils.

But following last week's Government announcement that an extra £280million would be spent on providing healthier school meals after his campaign, Oliver is back in the good books.

'Jamie could well be staying with us,' a Sainsbury's spokeswoman said yesterday. 'His contract is up for renewal next month.'