The agreement with Telegraph Media Group has Pagemasters sub-editing 150 pages a week out of its Sydney office.
The pages will be created in London and transmitted to Australia for editing, then transmitted back to the UK for publication.
Edward Roussel, Telegraph Media Group digital editor, said the move was necessary to reduce manufacturing and distribution costs.
Pagemasters, which was acquired by the Australian Associated Press in 2002 -- partly owned by Murdoch's News Corporation, also provides various page-ready listing services to a number of publications in Australia and New Zealand.
Bruce Davidson, managing director of Pagemasters, said: "This is a ground-breaking decision that further establishes Pagemasters as an important part of newspaper editorial production, not just in Australia and New Zealand, but now on a global basis."