News Limited has agreed to sell its online business directory TrueLocal to Telstra's advertising and directories arm Sensis.
The transaction is subject to Austraian Competition and Consumer and Commission (ACCC) approval and the parties have not disclosed the value of the deal.
Sensis managing director John Allan said the acquisition would add value to customers of the Sensis Yellow Pages network.
"TrueLocal has an extensive library of ratings and reviews which enables consumers to make more informed decisions when they search for a local business," Mr Allan said.
News Limited's chief financial officer Stephen Rue said TrueLocal was no longer a priority for the company which had recently invested in Foxtel, Fox Sports, Business Spectator and Eureka Report.
If the ACCC approves the acquisition, TrueLocal will still continue to operate in its current form.