** Shares of footwear retailer Foot Locker FL.N jump 60.8% to $20.70 in extended trading

** Rival Dicks Sporting Goods DKS.N nearing deal to buy FL for about $2.3 billion, the Wall Street Journal reports

** Proposed deal for FL for $24 per share represents an 86.5% premium on the stock's last close price of $12.87

** DKS shares down about 4% in extended trading

** The two companies did not immediately respond to a Reuters' request for comment

** FL down about 40% so far this year, as of last close, as President Donald Trump's erratic trade policy takes a toll on supply chain costs of footwear makers such as Nike NKE.N; DKS down 8% YTD, as of last close

(Reporting by Juveria Tabassum in Bengaluru)

((Juveria.Tabassum@thomsonreuters.com;))