Matsushita Electric Industrial, the owner of Panasonic, is working on a deal with internet giant Google to develop televisions that display internet content such as photographs and videos.

The deal represents the next stage in the integration of the internet with television, following similar deals by Matsushita's rival television maker Sony.

Panasonic will launch the TVs that will allow users to access videos directly on Google's YouTube video website, in North America this spring. Users will also be able to browse photos on the search engine's photo service Picasa Web Albums.

Matsushita said: "This is the first time mainstream consumers will be able to easily enjoy YouTube videos from the living room with the enhanced quality of a fully integrated widescreen TV."

The Panasonic deal is not exclusive and the firm has not yet set a date for a global launch. It announced the tie-up at the Consumer Electronics Show in Las Vegas.

Sony has already signed a content deal with American TV network CBS, adding to agreements with AOL, Yahoo, Sony Pictures Entertainment and Sony BMG Music. Its televisions will offer access to free video streaming internet and high-definition content.

Randy Waynick, the senior vice president of Sony Electronics, said: "Internet video will clearly be the next step in the evolution of high-definition television, giving users more control over the content they view."

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