In yet another partnership between old media and new, a consortium of newspaper publishers has teamed up with

Yahoo!

(YHOO)

to use the Internet giant's technology to sell advertising and offer search functions on the Web sites of more than 150 daily publications.

The deal will allow Yahoo! to reach local audiences tied to their hometown newspapers. Meanwhile, the group of publishers will leverage Yahoo!'s technology platforms to expand their reach and grab back some precious revenue that has migrated away in recent years as more consumers turn to the Web for their information needs.

Financial terms of the deal were not disclosed. The publishers include

Belo

(BLC)

, Cox Newspapers, Hearst Newspapers,

Journal Register

( JRC) ,

Lee Enterprises

(LEE) - Get Report

, MediaNews and

E.W. Scripps

(SSP) - Get Report

.

"This is a transformational deal for the newspaper industry," said MediaNews and Hearst, two founders of the consortium, in a joint statement. "This relationship will significantly extend our local assets to a much wider audience, and gives us the technology required to fulfill the growing demands of advertisers and consumers."

This deal follows closely behind a similar announcement from Yahoo!'s archrival,

Google

(GOOG) - Get Report

, which is partnering with newspapers like the

New York Times

(NYT) - Get Report

and

Washington Post

(WPO)

to use its advertising sales platform to sell space in print.

Edward Atorino, analyst with the Benchmark Company, says these deals represent an early step for newspapers in repositioning themselves for the digital age.

"This is a bit of light at the end of the tunnel for newspaper publishers," says Atorino. "It's another way for them to get a piece of the revenue that has moved online and start the process of fixing their business models."

The partnership will start in December with Yahoo!'s HotJobs service, and then move to other forms of online advertising. The newspaper groups are looking to recruit more participants from their industry.