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Yahoo and Google are now battling with one another in the realm of Internet advertising

Yahoo has announced a deal in which publishers representing 264 newspapers have agreed to sell advertising on their web sites.  The newspapers will begin selling online advertising on Yahoo while sharing all revenue that is generated through ad placement.  Also in the deal, the newspapers will get more of their stories published in the popular Yahoo news, finance and sports section.

The announcement comes at the same time the company wants regulators to monitor Yahoo's biggest competitor, Google, after the Mountain View-based company purchased DoubleClick.

"They are both trying to extend their influence and business opportunities beyond their own properties," said Stewart Barry, ThinkEquity Partners analyst.  Local advertisers are spending much more on Internet advertising before -- analysts expect the number to reach $12.4 billion in 2010, with last year's number of $3.4 billion.

Tribune and Gannett, publishers of newspapers such as USA Today and the Los Angeles Times, are not involved with the deal.  Reuters discovered that both Tribune and Gannett are working on their own type of advertising network for the Internet.

Newspaper publishers have had to force an evolution of how subscribers receive news because of the Internet.    Yahoo is working with a team of 12 newspaper publishing companies, with more publishers expected to join the effort in the future, analysts predict.