Google will provide its products for the broadcaster in the areas of PC, TV and mobile applications.
The two companies will collaborate in three main areas. Sky will launch a multi-media platform for user-generated video that will allow users to edit, upload and share their own video content, including the facility to upload and download from a mobile phone.
Google is also to provide its search tools and search advertising across Sky's portfolio of online sites. Revenue generated by click-throughs on sponsored links will be shared between Sky and Google.
The pairing has also agreed to collaborate on future forms of web, TV and mobile advertising.
Sky Broadband customers will now get a customised version of Google's email product Google Mail, which will use the @sky.com address. It will have the functions that Google Mail has, such as contacts, calendar and instant messenging.