Communications satellite firm Sky and Space Global says 200 of its nanosatellites will be launched into space by Sir Richard Branson's Virgin Galactic in 2018.
Virgin Galactic is better known as a developer of space tourism, but is also developing the capability to launch small satellites.
Virgin Galactic will use its orbital launch vehicle, LauncherOne, to deploy the satellites, starting in the second quarter of 2018.
"This agreement is part of our long-term strategy of building Sky and Space Global's nano-satellite communication system infrastructure and service," Sky and Space Global chief executive Meir Moalem said on Monday.
Sky and Space Global is listed on the Australian share market, but its areospace operations are based in Europe and Israel.
Sky and Space Global is aiming to construct a communications infrastructure, based on nano-technology, that has global reach but low costs.
Mr Moalem said LauncherOne's ability to carry multiple nanosatellites simultaneously was expected to deliver substantial cost savings.
Shares in Sky and Space Global were 0.2 cents lower at 2.1 cents at 1215 AEST.
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