Waterstones has revealed it will be selling the Amazon Kindle in store as part of a redesign that will see the bookstore offer a dedicated digital books section along with free WiFi and more coffee shops.

The deal will allow customers with Kindles to access free WiFi in the stores and take advantage of unique deals that will only be available to those who surf in Waterstones.

Rumours earlier in the year had suggested that Waterstones was developing its own eReader however with dipping sales being blamed on Amazon it appears the company has decided to join with its biggest rival in the hopes of staving off further losses.

In a statement released today James Daunt, Managing Director of Waterstones was keen to highlight the benefits this new relationship would have for the customer.

"The best digital readers, the Kindle family, will be married to the singular pleasures of browsing a curated bookshop. With the combination of our talents we can offer the exceptional customer proposition to which we both aspire."

With reports that Amazon could be looking to release a 10.1 inch Kindle Fire Tablet later this year all eyes will be on Amazon as to whether they bring the tablet to the UK.