Twenty-First Century Fox has agreed to acquire all of the outstanding shares in Sky that it does not already own.
The US-based cable, broadcast, film, pay TV and satellite group offered a 40 percent premium on Sky shares last Tuesday.
Sky’s directors accepted the £10.75 per share deal on Friday but said that “certain material offer terms remain under discussion”.
“The Independent Directors have indicated to 21st Century Fox that they are willing to recommend the Proposal to Sky shareholders, subject to reaching agreement on the other terms,” Sky said in a statement.
“Discussions are continuing and a further announcement will be made in due course as appropriate.”
Twenty-First Century Fox has until 6 Jan 2017 to either announce a firm intention to make an offer or walk away.
The company, which owns 39.1 percent of Sky currently, tried to acquire the rest of Sky in 2010 but had to withdraw its offer following the phone hacking scandal related to the UK newspaper arm owned by its then parent News Corporation.
“The proposed transaction would bring together 21st Century Fox’s global content business with Sky’s world-class direct-to-consumer capabilities, which have made it the number one premium pay-TV provider in all its markets, the US company said.
“It would also enhance Sky’s leading position in entertainment and sport, and reinforce the UK’s standing as a top global hub for content generation and technological innovation.”
Twenty-First Century Fox owns TV and cable networks FOX, National Geographic and Star India, the Twentieth Century Fox Film business and production house Endemol Shine.
Sky offers satellite and OTT TV services to 22 million customers in Italy, Germany, Austria, the UK and Ireland.
The company also sells broadband and fixed telephony services to subscribers in the UK and Ireland.
Sky announced details of its first mobile service earlier this month.
UK customers will be able to get the MVNO offering early next year.