Under the new deal, Terror Squad will release two albums on Koch.
The new deal marks a new chapter for Terror Squad.
The group has released two albums, 1999's self-titled Terror Squad and 2004's True Story.
The latter album spawned the hit "Lean Back" which featured former group member Remy Ma.
Together, the albums have sold close to 750,000 copies.
Through an existing deal with Koch, group member DJ Khaled has released two albums for Terror Squad/Koch Records.
His latest album, We the Best, is approaching 300,000 units sold on the strength of hits such as "We Takin' Over," and "I'm So Hood."
"The Terror Squad albums at Koch are going to be huge," added DJ Khaled, who believes the new alliance "is going to make history."
"Koch is a label that works their artists to victory," he stated. "I'm happy to be a part of two big families!"