The former quarterback was the first in the National Football League to kneel in protest against racism.
The controversial quarterback is featured in an ad posted to social media with the quote, "Believe in something".
On Tuesday, President Donald Trump says Nike is sending a "terrible message" by making Kaepernick part of a new campaign. The person spoke to The Associated Press on condition of anonymity because Nike hasn't officially announced the contract.
In an interview with Fox News previous year, Trump told Sean Hannity he thought Kaepernick should have been suspended after his first protest.
"Hey @Nike I guess you made @Kaepernick7 your new "face" of the brand because you love the way his socks look with your shoes?"
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The white community flew into a destructive rage this weekend after Colin Kaepernick was named the face of Nike's 30th anniversary "Just Do It" campaign.
In August 2016, Kaepernick began the movement to kneel during the USA national anthem in protest of racial injustice.
Star athletes including Serena Williams praised the company for putting Kaepernick's message at the forefront of its advertising, while quarterback Tom Brady also weighed in.
Surprisingly, Trump did not immediately join in on the attacks, but told the Daily Caller today, "I think it's a awful message". Even it if it means sacrificing everything.
Kaepernick hasn't been signed by any team since his protests began.
However, at least two other sports apparel companies-Adidas and Puma-were waiting in the wings if Nike decided not to go through with its Kaepernick deal, Yahoo Sports reported.
The Nike slogan, "Just do it", is written underneath.