The agreement, which comes shortly after former Fox executive Lee Bartlett was named head of global content at ITV, could see British and US versions of new series produced at the same time.
An early product of the deal will be a UK series based on culture-clash comedy Dharma And Greg, originally made by 20th Century Fox TV for ABC.
Each company will pick programmes from the other's catalogue for redevelopment and ITV is said to be looking specifically at two additional Fox titles.
New series will be developed, either separately for each market or as one project, under a co-funded Shared Development Group.
Bartlett, describing the deal as "potentially revolutionary”, added: “We could actually create scripted formats that could be produced in both countries at the same time.
“There could be differences - the cast for the British version could be more British than for the American version - but you could be making two series on top of each other, if I can put it like that. That could get you some pretty good production synergies."
TCFTV joint chairman Dana Walden, who agreed the deal with her co-chairman Gary Newman and Bartlett, said: "The goal is to be as nontraditional as possible in the development process and have as many avenues for experimentation open as possible."
John Whiston, director of ITV Productions, added: "If you are going to partner up with a US company then you should go for the one whose programming you most watch and whose creativity you most admire. For UK creatives, Fox is the best sweet shop in the world and we are very excited about being let loose in it."