Yahoo and Google have agreed to enable interoperability between Yahoo Messenger and Google Talk, their respective instant messaging services, bringing easier and broader communication to users.

The agreement is part of a broader deal under which Yahoo will have an option to display Google ads alongside its own natural search results in US and Canada. In addition, Yahoo would also be able to serve contextually targeted ads on its US and Canadian web properties as well as on its current publisher partner sites.

“This commercial agreement provides Yahoo with the opportunity to deliver more relevant ads to users and provide advertisers and publishers with better advertising technology to help them succeed in their own businesses,” Eric Schmidt, chairman and CEO, Google, has said.

Jerry Yang, CEO and co-founder, Yahoo, has said, “We believe that the convergence of search and display is the next major development in the evolution of the rapidly changing online advertising industry. Our strategies are specifically designed to capitalize on this convergence — and this agreement helps us move them forward in a significant way.”