Amazon customers would now be able to collect their parcels from Post Office branches with the e-retailer signing up to Royal Mail's Local Collect service, Sky News reported.
The announcement of the deal came only days after Royal Mail warned that Amazon's own delivery network would hit its parcel business growth and demanded "urgent" regulatory action for securing the future of its universal service mandate.
The deal would give Amazon access to 10,500 local post office branches.
According to the online retailer, customers opting to have parcels sent to a post office would need to pay a first-class delivery charge and present their ID at the branch for collecting their parcel.
According to Christopher North, Amazon's UK managing director, the arrangement would make the process of ordering and collecting an item more convenient.
Pick-up locations had become the delivery method of choice for many shoppers.
Amazon users already had Pass My Parcel stores, Collect+ stores and Amazon Lockers to collect their orders, International Business Times reported.
The service would cost the price of a first class stamp and customers would be able to select the branch that was most convenient to them, collecting their packages using photographic ID.
Under the service, Amazon's pick-up points across the country would increase to over 16,000 and it was a way for Royal Mail to cash in further on the festive season, following a drop in half-year profits was announced last week.
According to the managing director of Royal Mail Parcels, Nick Landon, Royal Mail was a key partner for online retailers and by teaming up with Post Office to offer the UK's largest click and collect service, it was enabling Amazon's customers to have greater control over the delivery of their items.
According to commentators, the partnership comes as something of a surprise given that last week Royal Mail had warned Amazon that launching its own delivery service would impede on profits.
However, Amazon was Royal Mail's biggest customer and analysts were looking at this initiative as a way for the former public sector organisation to hold on to valuable market share.
According to Nicla Di Palma, an analyst at Brewin Dolphin, the reasoning behind this must be Royal Mail trying to save some of its business.