The 1/2 BPS 't Hooft loops in N=4 SYM as instantons in 2d Yang-Mills

We extend the recent conjecture on the relation between a certain 1/8 BPS subsector of 4d N=4 SYM on S^2 and 2d Yang-Mills theory by turning on circular 1/2 BPS 't Hooft operators linked with S^2. We show that localization predicts that these 't Hooft operators and their correlation functions with Wilson operators on S^2 are captured by instanton contributions to the partition function of the 2d Yang-Mills theory. Based on this prediction, we compute explicitly correlation functions involving the 't Hooft operator, and observe precise agreement with S-duality predictions.