American video gaming business OnLive has signed an agreement with the UK telecoms firm BT to allow it to stream video games as part of its high-end domestic broadband package. The service will allow gamers to play bestselling titles via TV, PC or Mac, using only a small adaptor, instead of Xbox or PlayStation.

In the US also, OnLive has signed deals with a number of games publishers such as EA and Ubisoft. In the US, the service will be available from June 17th at a price of $14.95 per month.

The European service will start testing in 2010, with a full launch next year.

OnLive has also sold a 2.6 per cent stake to the UK broadband provider as a part of the deal for an undisclosed amount.

Gavin Patterson, chief executive of BT Retail business, said that the partnership would enhance their position in the broadband market by complementing their existing BT vision service.

Speaking on the deal, he added, “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.

The partnership will allow broadband subscribers to enjoy web-based games also.