The partnership will see the broadband provider promoted on selected pages - including the welcome page - of the Amazon website.
Amazon spokesman Damian Peachey said: "Virgin aligns very similar brand values to Amazon: innovation, value and putting the customer first. Our welcome page is an important equity - the deal with Virgin does not herald a rush to give over lots of webspace to advertising."
Amazon says it is in its interests to provide services that will improve customers' shopping experiences.
Solomon Degia, Amazon's marketing manager, explains: "Amazon. co.uk is keen to ensure that we are and remain a prime destination on the web.
"For many customers, the ability to use and sign up to Virgin.net will mean a much improved experience whilst using Amazon."
The ads, hosted by Amazon, click through to a custom designed registration page on the Virgin.net website. It offers a range of broadband products and a £10 Amazon gift voucher to those who sign up to the service directly through Amazon.co.uk.
The deal marks the first time that Amazon has allowed a third party to advertise on its website.
The deal is exclusive to Virgin and Amazon is stressing that it is not an open invitation for all third parties.
Previously, it had affiliations with the Royal Bank of Scotland to launch its Amazon.co.uk Mastercard.