The Alliance said yesterday that it had agreed to license more than 10 million pieces of music to YouTube.
Chad Hurley, CEO of YouTube, said: "We're pleased to be working in cooperation with the MCPS-PRS Alliance to provide the YouTube community in the UK with the best possible user experience."
Steve Porter, chief executive of the MCPS-PRS Alliance said: "We are delighted to have concluded this deal with YouTube and to be the first collecting society outside the US to do so. Whether it is music videos, user uploads or other audio visual content, our agreement will allow our 50,000 songwriter, composer and music publisher members to be paid when their creative talents are being enjoyed on YouTube's service across the UK."
YouTube is facing a number of lawsuits in the US filed by copyright owners who say that music and video clips uploaded on to the website infringe their IP rights.
The company, which was acquired by Google last year, has come under particular attack from copyright owners in Japan. Last month a delegation of officials from the US company travelled to talks with representatives of the Japan Society for Rights of Authors, Composers and Publishers, but failed to secure a licensing deal with the group.