Sky customers will soon be able to access hit Netflix shows such as The Crown and Stranger Things as part of their TV subscription.
Later this year, the TV streaming service will be available to new and existing customers through a brand new entertainment pack, which will combine Sky and Netflix content side-by-side for the first time, with subscribers paying a single bill.
According to Sky, this will be "attractively priced" and give millions of customers "seamless access to Netflix" through Sky Q.
For instance, people will be able to use Sky's search and voice search functions to quickly find Netflix programmes, while existing Netflix users will be able to migrate their account to the new Sky TV bundle.
Alternatively, people with a Netflix subscription can sign into the Netflix app using their existing account details.
Sky will also offer Netflix as a standalone app on its contract-free streaming service NOW TV, including on the recently launched NOW TV Smart Stick.
Jeremy Darroch, Group Chief Executive of Sky, commented: "By placing Sky and Netflix content side-by-side, along with programmes from the likes of HBO, Showtime, Fox and Disney, we are making the entertainment experience even easier and simpler for our customers.
"Our recent announcements mean we will extend our leadership in delivering customers the best viewing and user experience in Europe."
Reed Hastings, Chief Executive of Netflix, said: "With this innovative new partnership and Netflix’s stellar line-up of original content from across the world, Sky's customers will be able to seamlessly access and enjoy all the best entertainment in one place."
Dani Warner, TV expert at uSwitch.com, added that this announcement "sees Sky playing catch-up", as other major providers such as BT and Virgin Media already offer Netflix as an app through their TV boxes.
She pointed out that this "one-stop shop for programming", as well as the "allure of a single bill", will be very popular with customers.
However, she said details are still unclear on "how this will hit the price point or what this integration will look like for viewers, as it doesn't seem to be the app itself, but, rather, a 'first of its kind' partnership".
This latest announcement comes shortly after Sky confirmed that music streaming service Spotify will be added to Sky Q in the coming months.
Sky Q subscribers will be able to access music via an app in the homepage and use the ad-supported Spotify service free of charge.
Alternatively, they can log into their premium account to enjoy songs, albums and playlists without adverts.
Sky has also recently announced that the amount of ultra HD content available on Sky Q will double this year, with customers being able to view more than 1,000 hours of UHD content, including the entire Spider-Man franchise.
In addition,, Sky Q will feature greater personalisation based on a household’s viewing habits, while voice functionality will be extended to give personal recommendations.
This will enable customers to verbally ask for programmes or movies they might enjoy and be offered lots of suitable suggestions.
Furthermore, a new widescreen user interface is to be unveiled and a new Kids mode will be rolled out to ensure Sky Q offers a safe and fun viewing experience for children.