UK-based book retailer Waterstones has struck a deal with Amazon to launch new e-reading services and sell Kindle digital devices through its UK stores.

The move forms part of the UK group’s current investment plan to upgrade its 30-year-old retail chain through major refurbishment programme and other plans including dedicated digital areas, free wi-fi access in all stores, all planned for 2012.

Amazon.com founder and CEO Jeff Bezos said, "Waterstones is the premier high street bookseller and is passionate about books and readers – a dedication that we share deeply."

Waterstones managing director James Daunt said it is a truly exciting prospect to harness also the respective strengths of the company and Amazon to provide a dramatically better digital reading experience for the company’s customers.

"The best digital readers, the Kindle family, will be married to the singular pleasures of browsing a curated bookshop," he added.

The agreement will enable Waterstones to offer e-book services and other digital reading services from Amazon including new outlets for Kindle devices.

The existing Waterstones Kindle customers can digitally browse books as well as avail other offers from the company.

Waterstones expects the deal will strengthen its presence in the UK market by offering more Kindles for millions of users.