Yahoo will use Google's AdSense for content.
Yahoo has signed a global agreement with Google for contextual advertisements on some of its websites in order to generate more revenues.
Yahoo will use Google's AdSense for Content and Google's AdMob services to display ads on its various Yahoo Web properties and certain co-branded sites.
"By adding Google to our list of world-class contextual ads partners, we'll be able to expand our network, which means we can serve users with ads that are even more meaningful," Yahoo said in a statement.
"For our users, there won't be a noticeable difference in how or where ads appear. More options simply mean greater flexibility. We look forward to working with all of our contextual ads partners to ensure we're delivering the right ad to the right user at the right time."
The agreement comes seven months after Google executive Marissa Mayer was appointed as Yahoo's new president and CEO.
Yahoo reported a 2% rise in its revenue to $1.35bn for the fourth quarter of 2012, compared to $1.32bn it reported for the corresponding quarter in 2011.
In November 2011, Yahoo, Microsoft and AOL signed advertising agreements to improve the process of buying and selling premium online display inventory.