The letter outlines the financial benefits of the deal, under which Yahoo adds sponsored search results from Google alongside its own unpaid-for search results. It said that in the first year, it expects to generate between $250m (£126m) and $450m (£227m) from the deal.
The 10-year deal with Google was announced earlier this month, in the latest attempt by Yahoo to maintain its independence from Microsoft.
Microsoft has made a $45bn (£23bn) bid for the company, but Yahoo rejected this in February, arguing that it significantly undervalued Yahoo.
In the letter, from chief executive Jerry Yang and chairman Roy Bostock, shareholders are urged not to listen to activist investor Carl Icahn, who is pushing for the Microsoft sale to go ahead, even though Microsoft believes it is not currently interested in pursuing a deal.
"It is time for Yahoo to turn its undivided attention to implementing its key strategies, and we therefore urge you to reject Mr Icahn's slate and his ill-defined agenda.
"We strongly urge you to vote your white proxy card today for your current board of directors," the letter concludes.
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