Yahoo!'s oneSearch product will be embedded on O2's portal O2 Active and will reach 15.8 million customers on 240 different handsets, the firm claims.
Yahoo! will provide O2 users with access to news, images and Flickr photos through the partnership. Both firms have entered a revenue-sharing deal under which they will split proceeds from paid search listings.
Yahoo!'s deal with O2 extends across the mobile firm's parent company, Telefonica. O2 has also launched a range of tariffs so that customers can take advantage of mobile internet browsing.
Yahoo! last month struck a deal to sell ads on social network Bebo, in the latest in a string of partnerships.