CHICAGO -- Financially ailing Kmart Corp. has reached agreement with organizers of the Daytona 500 to withdraw as a corporate sponsor of the race.

Kmart decided to withdraw in order to save money while it reorganizes under Chapter 11 bankruptcy protection.

The two sides told U.S. Bankruptcy Judge Susan Pierson Sonderby last week that they were at odds over when Kmart notified race organizer International Speedway Corp. of its plan to withdraw.

Kmart said it had informed the ISC no later than Feb. 1, and the speedway said the notification came no earlier than Feb. 4. At stake in the dispute is the $685,000 annual corporate sponsorship payment.

The earlier the notification, the less Kmart must pay.

When they arrived in court on Wednesday, however, attorneys for both sides told Sonderby they had agreed on a Jan. 31 date. They have 30 days to decide how much Kmart must pay to get out of the contract.

Kmart is also ending its sponsorship of the Winston Cup cars driven by Joe Nemechek and Todd Bodine. The Kmart branding will remain on the cars through this weekend's race at Rockingham, N.C.