COPENHAGEN -- Lego Group is taking its toys and going home. Europe's largest toy maker will end its outsourcing deal with Flextronics next year and bring manufacturing back in-house, the company said today.

"During the past year it has become increasingly obvious to the two parties that it would be more optimal for the Lego Group to manage its global manufacturing set up," Lego said in a statement.

The deal has been in place since 2006.

As of next year, Lego will assume production at Flextronics' sites in Juarez, Mexico, and Nyiregyhaza, Hungary. The companies are negotiating the terms. Lego said it seeks to take over the Nyiregyhaza plant and staff, while it would move the Juarez production to a new site in Monterrey, Mexico.

Privately held Lego also has production sites in Billund, Denmark, and Kladno, Czech Republic.

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