The supermarket e-tailer will join the likes of Debenhams, Oxfam, The Carphone Warehouse and Buy.com to offer users a range of gifts from categories such as food and drink, toys and games, girls' fashion and Christmas items.
Yahoo! Shopping said the financial terms of the deal would be based on a transaction agreement.
The channel will feature Tesco.com advertising, as well as links to its site and clickthroughs to specific offers through the Yahoo! Shopping home page.
Head of business development at Yahoo! James Bilefield said that the channel would be signing up similar retailers in the near future.
"We've been working with major retailers in the UK with regard to the shopping service to be ready in time for Christmas. The deal with Tesco.com provides users with more choice from a brand they can trust, and as a key high-street brand, we'll hopefully be doing more stuff with it in the future," he added.