MILAN (Reuters) - European pay TV company Sky (>> SKY PLC) has agreed to buy Italy's MTV free-to-air channel from U.S. media group Viacom (>> Viacom, Inc.), a move that could pressure local market leader Mediaset (>> Mediaset SpA).

Sky Italia, the Italian arm of Sky, and Viacom did not disclose financial details in a joint statement on Friday.

The channel, which has the prized No. 8 position on the TV remote dial, will continue to distribute Viacom content, coupled with programming from Sky Italia.

(Reporting by Maria Pia Quaglia and Danilo Masoni, editing by Agnieszka Flak)

Stocks treated in this article : Mediaset SpA, Viacom, Inc., SKY PLC