The Australian pair duetted on their 1988 smash hit Especially For You to rapturous audience applause.
During a musical interlude, Jason swept the diminutive pop star -- dressed in a short black dress with green leather -- off her feet in a heartfelt embrace.
Globally loved for their roles as Scott and Charlene in soap Neighbours, the single sold well over a million copies.
"How long have you waited for this for?" Minogue asked, before singing the closing notes. The stars were joined by 80s and 90s pop stars Rick Astley, Bananarama and Steps for the Hit Factory Live -- Christmas Cracker at London's O2 arena.
The show celebrated the Stock Aitken Waterman songwriting and production team. Sinitta performed a medley of hits before enlisting the help of her backing dancer Billy to strip her down to her underwear, quipping "He's never undressed a grown woman before", before singing Toyboy.
Pete Waterman himself took to the stage to present a tribute to the late Donna Summer sung by his latest protege, James Graham.
Pete Burns joined his Dead Or Alive bandmates to play You Spin Me Right Round while Bananarama performed I Heard A Rumour, I Want You Back and Venus. All the acts took to the stage to close the show with Slade's Merry Xmas Everybody.