Foxtel programs will be able to be viewed via the Xbox LIVE service for all owners of the Xbox 360.

Disney, Fox Sports, Nickelodeon and Discovery are among the channels that will be included in the deal along with a range of video on demand offerings.

This is the very first time Foxtel will be available without a dedicated set top box.

According to Computerworld, managing director of Foxtel Kim Williams described the partnership as an "exciting new frontier" in a statement.

Williams said that their 1.6 million subscribing households and new customers a transformative way of enjoying and viewing Foxtel via the internet provided by Foxtel via Xbox LIVE. A variety of packages and pricing and flexible agreements with Foxtel will be offered through Xbox LIVE.

Microsoft stated that Australian used up over 106 million hours on the Xbox LIVE service and Microsoft was almost selling one million Xbox 360s in Australia.

The packages, prices, further product details and the full line-up of the channel will be on the loose publicly some time nearing the launch of the service.