Sky Arts 1 is to combine with Sky Arts 2 to form a new 'super-channel', which will feature more prominently on the Sky channel listings.
The revamped Sky Arts - which will benefit from a ten per cent budget increase - is moving up from the fourth to third page on Sky's electronic programming guide (EPG).
As the Sky Arts channels merge, meaning fewer repeats over the course of the week, more content will be made available to TV viewers on-demand.
Sky Arts On Demand will offer customers over 1,000 hours of dedicated arts programming, some of which will be exclusively available on the download service.
Philip Edgar-Jones, Director of Sky Arts, said the broadcaster believes "the arts are for everyone".
"We know that a lot of our content appeals to genre enthusiasts, and the feedback from our customers tells us that they want to find the stuff they love in one place," he stated.
Mr Edgar-Jones said that, with this in mind, Sky has looked at its offering to ensure viewers can more easily find the content they are passionate about.
"With our new on demand service alongside what we think is the strongest line-up of programmes yet, we think the new look Sky Arts will genuinely offer something for everyone."