The agreement was signed during a meeting between Pakistan Prime Minister Syed Yousaf Raza Gilani and the Spanish Prime Minister Jose Luis Rodriguez Zapatero. The agreement is aimed at enhancing cooperation on security, trade and other issues.
Gilani is on the highest level visit to Spain, the first since former President Pervez Musharraf in 2007.
"The commitment by both governments in the fight against terrorism is a commitment to collaborate," Zapatero told a joint news conference after the talks.
"I am very grateful to Pakistan and thank you for the efforts you have made to fight against radicalism and terrorism in the region. I would like you to know that you can count on Spain for the stability of Pakistan" he said.
Gilani said that Spain and Pakistan "have both been victims of terrorism, and both countries are cooperating to root out this menace"
Spain suffered its worst ever terror attack on March 11, 2004 when bombs exploded on packed commuter trains in a Madrid suburb, killing 191 people and wounding 1,841 others.
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