Telstra Corporation Ltd (ASX:TLS), Australia's biggest telecommunications company, will make an accounting gain of up to $150 million on an agreement to restructure its troubled 50:50 Hong Kong joint venture Reach.

The telco giant said it had inked an agreement with joint venture partner Hong Kong-based telecommunications company PCCW, which will result in a division of the majority of Reach's international assets between Telstra and PCCW.

Melbourne based Telstra said it expected recognising an accounting gain of $50 million on signing the deal and a further $80 million to $100 million on finalising the agreement. The structural changes to Reach are due to be completed during the first half of this year.

''Reach will continue to manage the remaining joint assets, which are predominantly located in Hong Kong.''

"These assets will allow Telstra International's enterprise and global service provider customers to experience enhanced customer service with improved service management and delivery, brought about by greater control of Telstra's end-to-end service delivery platform," a Telstra spokesman said.