Australia and Pakistan will sign a counterterrorism cooperation agreement during a visit to Australia this week by Pakistan President Pervez Musharraf [Images] -- the first ever by a Pakistani head of state -- Australia's Prime Minister John Howard said on Sunday.

"Pakistan is a key ally for Australia in the war on terror, and has played a pivotal role in efforts to dismantle global terrorist networks such as Al Qaida,'' Howard said.

Howard called the visit a historic milestone in the two countries' relations, and said he and Musharraf will sign a memorandum of understanding that outlines a joint approach to global counterterrorism efforts.

"These agreements play an important role in fostering cooperation between our intelligence, security, law enforcement and defence agencies,'' Howard said in a statement issued on Sunday.

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Howard also praised Musharraf's support for the United States-led war on terror.

"President Musharraf has played a courageous and resolute role in combating terrorism in the region, and has demonstrated a strong personal commitment to improving relations between Pakistan and India,'' he said.

Howard also said he plans to talk with Musharraf about prospects for closer cooperation in agriculture and a formal partnership between the two countries' financial regulatory bodies.

Musharraf is to arrive on Monday in Australia's capital, Canberra, and is to stop in Sydney before travelling to New Zealand [Images] on Thursday.