S2 has been dropped from the ITV Digital lineup as of this morning.
Following a deal between Carlton, Granada and SMG, ITV2 and the new ITV Sport channels will be broadcast in Scotland.
SMG has also agreed to market ITV Digital, following a recent dispute between the companies over the rebrand (see our earlier news story here).
Carlton and Granada have paid SMG an undisclosed amount as part of the deal.
An SMG spokesman said: "We were always sympathetic about what Granada and Carlton wanted to achieve with the brand. The disagreement was about receiving adequate compensation, which is what we now have."
Similar talks are in progress with UTV, Border and Channel TV.
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