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Lexmark will become Dell's "preferred supplier" for non-Dell products in the initial stages of the agreement, the financial terms of which were not disclosed.
In the first half of 2003, the companies will work together to get Dell-branded printers on the market. The companies will also produce ink cartridges for the printers they sell.
Dell has created a great deal of speculation over its announcement during its second-quarter earnings announcement in August that it would enter the printer and personal digital assistant markets by the end of this year.
Before that announcement, Hewlett-Packard said it would stop supplying Dell with its printers as a result of the companies' new rivalry in the PC market.