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Published 11:33 25 Jul 2015 BST
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In the footage, presenter Ashish Joshi is explaining opposition to David Cameron's NHS reforms outside the Houses of Parliament.
Viewers soon noticed illusionist duo 'Young and Strange' hijacking the report by performing an incredible shrinking man trick in the background of the shot.
Those in the know may have noticed that the graphics on the report were slightly different than usual, and that the news report was in fact fake.
However, most people were shocked when Sky News later confirmed that it was actually a publicity stunt and that the presenter was in on the hoax.
The broadcasters tweeted "We’d like to clarify that the Ashish Joshi video with the magicians in the background is not a Sky News report."
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