The airline will become a reward partner of the scheme, allowing customers to get discounts across any flight in its network. They will not be able to earn points through EasyJet purchases.
Passengers can pay for flights and taxes in part or in full using Nectar points. Under the scheme, 500 loyalty points is worth £2.50.
Nectar’s 17 million members can also earn points with Sainsbury’s, British Gas and 500 online partners.
The EasyJet partnership is supported by Sainsbury’s, Nectar’s largest partner and will be promoted in-store.
EasyJet expects 300,000 flights to be booked using Nectar points each year and customers to spend £15m to £20m in the first year.
EasyJet chief executive Carolyn McCall says: “It offers greater flexibility for our existing customers as well as opening up opportunities to new Nectar customers.”
The budget airline had been embroiled in a legal battle with Sir Stelios over the “Easy” brand but in October agreed that the airline could retain the brand. McCall said at the time that the agreement would allow the airline to embark on a number of co-branded partnerships.