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This paper presents a holistic peer selection scheme in multi-domain environments, aiming to mitigate Peer-to-Peer (P2P) traffic volumes over expensive inter-domain links as well as the maintenance of desirable P2P users' perceived service quality. The mechanism combines the traditional locality-aware peer selection with the consideration of ISP business relationship. By leveraging between the two peering strategies, the risk of possible congestion on critical inter-connected links can be effectively alleviated due to more concentrated P2P traffic over fewer inter-ISP links under pure cooperative peering schemes. According to our analytical modelling, the proposed hybrid approach is able to achieve better performance for P2P users, and can retain desirable network efficiency as of the cooperative peer selection strategy. Our modelling based analysis offers the incentives to perform peer selections in multi-domain environments wherein non-cooperative networks and cooperative networks coexist.