Satellite communications firm Sky and Space Global is set to announce a strategic partnership with Sir Richard Branson's Virgin Galactic.

Shares in Sky and Space Global have been halted from trade on the Australian market until Monday, ahead of a formal announcement of the deal with Virgin Galactic, the space tourism and satellite launch company yet to make its first tourist flight.

Sky and Space Global's strategy is to build communications coverage using nanosatellites - mini satellites around 10 centimetres tall and weighing between one and 10 kilograms.

The company is based in the UK, and listed on the Australian share market in May 2016 following a reverse takeover of petroleum and gas exploration firm Burleson Energy.

Virgin Galactic is a privately-funded space company owned by Virgin Group and Abu Dhabi's Aabar Investments.

It has signed up hundreds of customers for tourist space flights at a cost of $US250,000 per ticket, but after more than 10 years of developing a space vehicle for tourists is still yet to launch.

Sky and Space shares last traded at 2.2 cents.