BT (British Telecom) has been chosen as the exclusive partner to OnLive in the UK.
The company's also bought a 2.6 percent share in OnLive.
The deal will see BT package the service with its broadband packages in the UK when it launches sometime in the region this year. The company says it will share more details on the move and its launch plans "later this year".
"Entertainment is going to be at the heart of what we offer customers in the future," BT boss Gavin Patterson said. "It's great for our customers - they'll have access to a huge catalogue of games, available instantly on their TV or PC without expensive hardware."
OnLive CEO Steve Perlman said of the deal: "The UK market is extremely important to OnLive and our video game publishing partners as we expand into Europe. We view BT as the ideal UK partner."
He further added in a separate post on the OnLive blog: "We’re really excited about OnLive’s potential in Europe, and looking forward to kicking it off in the UK through our partnership with BT."
OnLive is due for launch in the US next month.