The partnership will see YouTube offer more than 400 full-length films free of charge on its UK site. The Google-owned video site launched a Movies site in the US last year.
Movie streaming service Blinkbox will be making 165 films available as part of the new Movies section including, 'The Hotel New Hampshire', 'The Addiction', 'Dark Side Of The Sun' and 'Death Train'.
The launch will see YouTube capitalise on the gap in the online video market made by the abandoned UK launch of US video site Hulu.
YouTube also aims to build on the success of its TV Shows section, which includes full length catch-up programmes from Channel 4 and Five, such as 'Peep Show', 'The Inbetweeners', and 'Fifth Gear'.
Donagh O’Malley, YouTube's head of video partnerships, said: "This is one of many efforts to ensure that people can find all the different kinds of video they want to see, from bedroom vlogs and citizen journalism reports to full-length films and TV shows."
Michael Comish, Blinkbox chief executive, said: "The size and scope of YouTube's audience is immense and this exciting tie up allows us to reach film fans and potential users outside of our usual audience and helping us build on our rapidly growing customer base."