The internet company Lastminute.com says it has formed a partnership that could create the biggest online travel agency in Germany.

The UK internet company has teamed up with LCC24, the internet travel arm of Lufthansa City Center.

Lastminute is using its own shares to buy a 20% stake in the company for £2.4m.

The internet business, run by Martha Lane Fox and Brent Hoberman, already has its own German subsidiary.

But it said Lufthansa City Center's 300 franchised travel agencies in Germany would give it access to four million customers.

And people who booked over the net in Germany would be able to collect their tickets from the travel agencies and kiosks.

Growing market

Lastminute said it might increase its shareholding in the company over the next three years.

Allan Leighton, the chairman, said Lufthansa City Centre was a superb partner.

"The blend of their offline skills together with our knowledge of the online world will provide an unbeatable combination for Germany," he said in a statement.

Hemjo Klein, the chairman of LCC24 said he thought the German online travel market would grow rapidly in the near future.

Lastminute's shares were priced at 380 pence when it floated on the stock market just over two years ago.

Its shares are now trading at around 80p.