The deal will see ITV Digital channels broadcast on Sky's satellite system. The ITV channel ITV1 will be immediately available on Sky channel 103, next to BBC1 and BBC2 at 101 and 102, with ITV2 and ITV Sport set to join the service soon.
BSkyB and ITV have been in dispute for three years over what ITV channels Sky will run on its service.
The deal will be welcomed by ITV investors who have been pushing for Carlton and Granada to abandon the loss-making digital venture ITV Digital, which has lost more than £400m since it was first launched as ONdigital.
In September, it was reported that ITV chiefs wanted to come to an agreement that would see Sky and ITV Digital cooperate on the rollout of digital television services rather than continue to do costly battle.
The agreement will bring much relief to ITV as the deal represents millions of pounds in advertising revenue, which would have been lost if it had not been signed. One report put the figure at £200m a year.
ITV chief executive Stuart Prebble said, "This is good news for satellite viewers, who will be able to watch ITV1 and ITV2 through the Sky Digital EPG with digital quality pictures and full programme information."
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