Under the agreement, Google's advertising clients will gain access to the advertising inventory offered by publishers in Yandex's advertising network, while Yandex's advertising clients will be able to bid for display inventory in Google's real-time bidding marketplace DoubleClick AdExchange.
This partnership will result in a larger number of bidders, which is expected to boost revenue for the most sought-after advertising spaces, Yandex said in a statement.
Yandex, which is ahead of Google in Russia with a market share of over 60 percent, said technical integration is expected to take several months.
The agreement only relates to display advertising, and does not cover text-based contextual advertising, Yandex said in a statement.
In January, Yandex signed an agreement with Facebook (FB.O) for access to content from some of the social networking site's users in a move to further improve its search results.
Reporting by Chris Peters in Bangalore; Editing by Supriya Kurane