NEW YORK, March 2 (Reuters) - Macy's Inc (M.N) will launch a new line of lower-priced men's sportswear with Kenneth Cole Productions Inc (KCP.N) later this year, in the latest exclusive deal aimed at helping a major U.S. department store set itself apart from rivals to win market share.

Macy's said it will be the only department store chain at which the sportswear line of Kenneth Cole's Reaction collection will be available.

The line will be launched at 150 Macy's stores and on its website in September and include a roll-out of new Reaction shop-in-shops.

"By bringing the new Reaction men's sportswear collection exclusively to Macy's, we are continuing to differentiate our assortment and provide additional options for the man who wants to look and feel his best," Macy's CEO Terry Lundgren said in a statement.

With U.S. consumer spending only beginning to recover, department stores such as Macy's, J.C. Penney Co Inc, (JCP.N) Kohl's Corp (KSS.N) and even upscale Saks Inc (SKS.N) have begun to rely on exclusive deals with top designers in a bid to lure shoppers to their stores.

In December, Penney signed a deal to be the exclusive U.S.-based department store retailer for Spanish fashion chain Mango, while Kohl's last week reported strong quarterly profits as its lucrative brands, such as Simply Vera Wang, have sold well.

The new Kenneth Cole sportswear line will focus on denim, graphic tees, and woven shirts, and is geared toward a younger, more casual and price-conscious shopper than the Kenneth Cole New York collection, the companies said in a statement.

The exclusive line would eventually be available in 550 Macy's stores. The chain operates about 850 department stores, including its namesake chain and the upscale Bloomingdale's stores. (Reporting by Phil Wahba, editing by Dave Zimmerman)