The move extends the satellite broadcaster's push into broadband and gives millions of its UK subscribers access to films and sports highlights on a new format.
The US internet giant is understood already to have signed up content partners, including CBS, the American broadcaster, and the National Basketball Association, according the UK's Times newspaper.
The new service - which will be available from as early as Tuesday next week - would make use of Google’s search technology to find video content. It would then allow users to pay for the content and download it to their computers.
BSkyB subscribers who own PCs with Microsoft’s Media Centre software will be able to access video-on-demand features through the recently announced Sky By Broadband service.
A similar partnership will be agreed with the satellite company’s American sister service, DirecTV, also part of News Corporation. This will see video from the service streamed directly to Windows Media Centre PCs.
BSkyB claims nearly half its satellite TV customers have broadband access.
