Jason swept the pop princess - dressed in a short black dress with green leather - off her feet in a heartfelt embrace
Kylie Minogue and Jason Donovan were reunited on stage for the first time in 23 years.
The Aussies 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.
"How long have you waited for this for?" Minogue asked, before singing the closing notes.
Globally loved for their roles as Scott and Charlene in soap Neighbours, the single sold more than a million copies in the UK alone.
The stars were joined by 80s and 90s pop stars Rick Astley, Bananarama and Steps among others 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.
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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, dressed in a black dress and veil, joined his Dead Or Alive bandmates to play You Spin Me Right Round.
Wearing black dresses, Bananarama performed I Heard A Rumour, I Want You Back and Venus.
Though best-known as a trio, Keren Woodward and Sara Dallin now perform as a duo.
Ahead of his headlining spot with Minogue, Jason Donovan serenaded the crowd with hits including Nothing Can Divide Us and When You Come Back To Me, including some energetic dance moves.
Rick Astley belted out his hit single Never Gonna Give You Up, which has become an internet sensation in recent years.
The recently reunited Steps sang a selection of their greatest hits, including The Bee Gees's Tragedy and One For Sorrow.
ÂOther acts included 2 Unlimited, Sonia, Princess and Pepsi & Shirlie.
All the acts took to the stage to close the show with Slade's Merry Xmas Everybody.
A proportion of proceeds from ticket sales will be donated to Cancer Research UK.
The show had been due to take place in Hyde Park in the summer but was axed because of bad weather.
Kylie and Jason back together
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