China Telecom Corp Ltd will start selling Microsoft Corp's Xbox One gaming console in China from September through an exclusive contract, the country's third-largest telecommunications company said in a statement on Friday.

The launch date and price have not yet been decided, China Telecom spokesman Ivan Wong told Reuters by telephone.

The Xbox One will be the first gaming console to be released in mainland China since the government banned console sales in 2000, citing games' effects on mental health.

In September last year, Microsoft reached a deal with Chinese internet TV set-top box maker BesTV New Media Co Ltd to form a joint venture to manufacture the consoles in Shanghai's Free Trade Zone.

Released in November, the Xbox One has trailed in sales to Sony Corp's Playstation 4 which was launched around the same time.

To spur sales, Microsoft in June began selling the Xbox One without the Kinect motion sensor for $399, or $100 below the price of the full bundle.

A Microsoft spokeswoman declined to provide immediate comment.