June 18 (Bloomberg) -- AT&T Inc. agreed to keep its logos on the No. 31 stock car driven by Jeff Burton for another three years a day after it was sued by Nascar for $100 million in a sponsorship dispute.

AT&T said in a statement with Welcome, North Carolina-based Richard Childress Racing, the owner of Burton's car, that it exercised an option to extend its contract through the 2010 season. Financial terms weren't disclosed.

Burton, 39, fifth in Nascar's championship race, agreed to extend his contract to drive for Childress, where he has been since 2004. The duration and financial terms of the agreement are confidential, team spokeswoman Christine Carland said.

AT&T has had its logos on the No. 31 car since an Atlanta judge last month allowed it to change from Cingular Wireless, a brand that is being phased out. The largest U.S. phone-service provider got Cingular as part of its $10.2 acquisition of BellSouth Corp. in January. Nascar, whose top series is sponsored by Sprint Nextel Corp., wants the court to overturn the temporary injunction.

Nascar's suit against AT&T claims that the agreement that allowed Cingular to sponsor a car even though Sprint Nextel had exclusive rights to advertise wireless products doesn't allow the logos to be changed. Nextel paid $700 million for the title sponsorship of Nascar's top series in 2004.

Richard Childress Racing and Sprint Nextel aren't parties to the lawsuits. Carland declined to comment on the litigation.

To contact the reporter on this story: Gene Laverty in Calgary at glaverty@bloomberg.net.

Last Updated: June 18, 2007 13:08 EDT