Google announced on Monday that it will sell advertising on eBay’s auction sites and create a system to help buyers directly call sellers. Under the deal, Google will provide exclusive text advertising on eBay outside the U.S. Full terms of the agreement were not disclosed. But EBay already have a current contract with Yahoo for US advertising since May, 2006.  Its big blow for Yahoo!, since Google is the barricade on Yahoo’s way to No. one search engine.

Google and eBay will also develop a service that allows users to place phone calls through their personal or laptop computers or handheld devices by clicking on a link in an Internet ad. The “click-to-call” Web site technology is intended to reach a wider audience than the current text-only Web site. The new technology will allow potential buyers to call sellers by clicking a link on a Web page.

Internet auction site eBay last year bought Skype, an Internet phone service. Google has its own messaging and phone service. Both services will be used in the new partnership, but details weren’t instantly available. Starting soon, Skype will offer its users the option to download the Google Toolbar which will include a Skype custom button. The company plans to rely on Google’s international reach to build an overseas market for Skype.

Until now Yahoo has successfully out-bided Google in Asian market especially in Japan and Hong Kong. But looks like things are going to role in Google way from now on. Since we no that eBay is the most popular bidding industry through out the world, alliance with eBay will give Google extra guns needed to totally outgunned Yahoo!