The promotion, which runs for two months, is designed to get readers associating the device with newspapers and magazines as well as books.

Customers who purchase a one-year Nook subscription to The New York Times at $19.99 a month will receive a top-rated Nook Simple Touch for free (usually $99) or a 7 inch Nook Color for just $99 (usually $199).

Jonathan Shar, vice president and general manager of digital newsstand at Barnes & Noble, said: “We are excited to work with The New York Times to present this unique offer that, for the first time ever, gives readers a chance to get a one-year subscription to our top-selling digital newspaper with an award-winning Nook Simple Touch at no cost, or a Nook Color at a $100 savings. Our customers love to have their newspaper automatically delivered to their Nook device each morning, ready to read anytime and anywhere.”

The Nook subscription to the New York Times also gives access to the NY Times website.

Yasmin Namini, senior vice president, marketing and circulation and general manager, reader applications, The New York Times Media Group, said, “We are delighted to be working with Barnes & Noble on this great offer, which we believe will expand the number of our loyal Nook readers. We continue to design our digital subscription offerings to provide access to our high-quality journalism across a variety of platforms.”

Last week Barnes & Noble said it was reviewing its Nook business strategy and considering spinning off its Nook division.

In addition it said it had sold fewer black-and-white Nooks, which compete directly with Amazon’s Kindle, than forecast although sales of the colour version beat expectations.

The deal for People magazine means that readers can get a Nook Tablet for $199 with purchase of a one-year subscription — $50 less than the device’s regular retail price.