NEW YORK (Reuters) - TiVo Inc is developing a new digital video recorder for satellite TV provider DirecTV , rekindling a strained relationship and potentially opening the door to boosting the number of its subscribers.

TiVo shares climbed more than 2 percent on Wednesday after the companies said that they had extended their current deal and added the development, marketing and distribution of a new high-definition DirecTV DVR featuring TiVo service. The product’s launch is expected in the second half of 2009.

Terms of the deal, which also includes an extension of intellectual property arrangements, were not disclosed. But in a federal filing, TiVo said DirecTV will pay a substantially higher monthly fee for households using the new high definition DirecTV DVRs than it does for previously deployed models.

In addition, fees paid by DirecTV are subject to monthly minimums that escalate during the term of the pact starting in 2010 and those minimum payments are “substantially higher” than in the prior agreement, TiVo said. For more information visit i4u.com