(Adds Telstra's expected gain on deal)
March 6 (Reuters) - Telstra Corp TLS.AX and News Corp NWSA.O on Tuesday confirmed they would combine Foxtel and FoxSports Australia, two months after Australia's competitionwatchdog dropped its opposition to the merger.
Fox Sports is owned by News Corp, which also owns Foxteljointly with Australia's Telstra.
Telstra expects to record a one-off accounting gain,estimated at A$263 million ($204 million), as a result of thedeal, it said in a separate statement.
However, the company's previously stated guidance forfinancial year 2018 remains unchanged.
Under the terms of the deal, News Corp will hold 65 percentin the combined venture and Telstra 35 percent. News Corp willappoint four directors, including the chairman, and Telstra willappoint two directors.
The transaction is expected to close during the fourthquarter of this year.
($1 = 1.2883 Australian dollars)