The rumors are true. Groupon and Foursquare have been in talks to form a partnership, Mashable has learned. Both U.S. and Canada can expect to start seeing daily deals in the explore tab of the Foursquare application. Chicago is the first city to see the Groupon real-time deals and location-based Groupon Now.

All U.S. and Canada Foursquare users can expect to see the Groupon deals along-side Foursquare roll out this Sunday.

This partnership is beneficial for both companies. Groupon will share an undisclosed amount of revenue with Foursquare, while gaining exposure and broadening their audience reach.

A company spokesperson says “Foursquare’s goal is to help people connect in the real world, discover new places, and save money through Specials and Deals. We’re excited that Groupon’s daily deals and real-time deals will now be included in our Deals platform”.

For those of you who use Foursquare, can you see this partnership adding value to the application?