The Telegraph is reporting that Channel 4 and YouTube have formed a partnership where full length Channel 4 shows will be hosted on the Google-owned site.

As the furore about free content and advertising revenues rumbles on, the two companies appear to have settled upon a deal that is beneficial for both content provider and content host. It will be very interesting to see how this pans out as it is the first significant UK deal between a television channel and YouTube.

The deal will allow Channel 4 to sell the advertising space around its content. If successful, this could form the blueprint for similar future deals.