BT Sport has finalised a deal with Uefa to exclusively broadcast Champions League matches from 2015. The company will also show Europa League fixtures in the three-year agreement that will run from the 2015-16 season.

BT Sport's coup is a significant blow to Sky and ITV, the existing rights holders. It also takes the tournament off free-to-air television for the first time, unless BT Sport follows its Premier League lead and makes some matches available to non-subscribers.

BT Sport, who paid £738m to enter the football market this season by purchasing the rights to Premier League games, concluded the deal on Saturday morning with European football's governing body and has agreed to pay around £299m a season for the rights to all 350 matches in the two Uefa competitions each season.

Gavin Patterson, the BT chief executive, said: "I am thrilled that BT Sport will be the only place where fans can enjoy all the live action from the Uefa Champions League and Uefa Europa League. Both tournaments are world class and firm favourites with many.

"BT Sport has got off to a strong start with customers enjoying what we have to offer. We have attracted millions of customers by giving sport back to the fans, and we can assure people who want to catch all the action, that European football will be far more accessible and affordable with BT."

Sky feels BT paid "far in excess" of its own valuation for the rights to the European matches. A statement from Sky read: "We bid with a clear view of what the rights are worth to us. It seems BT chose to pay far in excess of our valuation.

"There are many ways in which we can invest in our service for customers. We take a disciplined approach and there is always a level at which we will choose to focus on something else. If we thought it was worth more, we'd have paid more.

"Nothing changes until 2015 and we look forward to 18 more months of live Champions League on Sky Sports. We will now re-deploy resources and continue to bring customers the best choice of TV across our offering."

The BT channels are also showing live FA Cup games and live football from the top leagues in Germany, Italy, France and Scotland plus the FA Women's Super League.