Canada’s Yellow Pages (YPG) signed a deal today with the location-based social networking startup Foursquare in order to help in Foursquare’s “venue harmonization  project.”  The goal of the project is to improve the accuracy of business locations in Foursquare’s database.

The two services will work together via API in order to pass data back and forth between the two companies.

The deal was made in order to add to the accuracy of locations within Foursquare’s location database, but Yellow Pages will also be receiving benefits out of the deal.

Yellow Pages Vice-President of Digital & Print Media, Acquisition & Rentention, Nicolas Gaudreau says, “Through agreements such as this one, we continue to increase the value proposition of our public API, www.YellowAPI.com, and multiply traffic driven to our advertisers by making sure their businesses appear in major online and social networking destinations.”

In other words, the increased exposure Yellow Pages can offer to its advertisers via Foursquare will help YPG broker larger advertising deals and possibly bring in new advertising contracts.

Yellow Pages will be adding around 1.5 million Canadian business listings and information to Foursquare’s venue harmonization project.

Foursquare is equally as happy with the new deal.  Foursquare’s Director of Business Development, Eric Friedman stated, “We not only want to make location integration as easy as possible for developers, but we want to make sure we’re providing accurate and verified information.  We’re really pleased that Yellow Pages Group has come on as our Canadian partner in authenticating local business listings.”

This cooperation will also allow developers using Yellow API to add Foursquare functionality to their apps.  This deal is clearly a “win-win” situation for both parties.