Lastminute will provide Yahoo! with content covering co-branded flights, holiday offers and hotels. Users who select the content will be directed to Lastminute's booking service to complete the transaction.
The deal also means that Lastminute will become the first retailer to feature on the My Yahoo! personalised area on Yahoo!'s site, where users will be able to receive dedicated Lastminute offers.
Terms of the deal were not disclosed, but Lastminute said the association will be promoted with co-branded "deals of the day" banners across Yahoo! UK & Ireland.