Yahoo! has announced it has struck a deal with seven American newspaper organisations, which will see them share online advertising, content and technology.

The deal will allow 176 regional newspapers to use the internet company's classified HotJobs website from December.

Meanwhile, Yahoo! news facilities will have access to local content from regional journalists.

Chief executive Terry Semel said: "We believe the local segment is largely untapped and provides significant opportunities to expand audience engagement and subsequently grow local advertising."

The newsgroups include six major chains, including Hearst Newspapers and the MediaNews Group, and sell more than 12 million editions every day across 38 states.

Newspapers involved in the scheme include the San Jose Mercury News and the Houston Chronicle.

According to the Bank of America, the US online advertising sector will increase from $3.4 billion (£1.7 billion) this year to around $12.4 billion by 2010.

Earlier this month, the internet company reported it has gone into partnership with phone operator Vodafone to provide mobile advertising to customers across Britain.