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The New York Daily News, the nation’s fifth largest newspaper, said Friday it has joined Yahoo (NSDQ: YHOO)’s classified advertising network of newspapers, becoming the latest publisher to partner with others in trying to grab a bigger slice of the online ad market.

The Daily News becomes the largest newspaper to join Yahoo’s Newspaper Consortium, launched in Novemberl 2006. The Internet portal distributes its HotJobs recruitment listings through its partners’ local listings, which are also distributed through the consortium’s network. Yahoo hopes to eventually expand the deal to broaden the type of advertising distributed.

The Daily News also said it would use Yahoo’s online advertising tools to distribute targeted display ads through the portal’s network. “Our partnership with Yahoo will allow us to provide additional opportunities to our advertisers, to job seekers and to all of our users,” Marc Kramer, chief executive of the Daily News, said in a statement.

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