Users of Tiscali TV, the broadband provider's IPTV (Internet Protocol Television) service, will now be able to watch a raft of Sky TV channels.
The deal, announced today, includes Sky One and several other channels that were recently removed from Virgin Media's IPTV service, after a row between Virgin and Sky.
This new deal will be seen as a blow to Virgin Media, not to mention its customers, who lost access to shows such as 24 and Lost as a result of the high-profile disagreement.
Mike Darcey, Sky's chief operating officer, said: "We're delighted that Tiscali has chosen to invest in our suite of basic channels and use them to differentiate its expanding TV service."
Tiscali offers a 'triple-play' package including up to 2Mbps broadband, TV and free weekend calls for £14.99 per month.