New Delhi, Jan 4 (IANS): The Union Cabinet on Wednesday approved the signing of an MoU between India and Portugal on agriculture and associated areas, official sources said.

"A meeting of the Cabinet, chaired by Prime Minister Narendra Modi, gave approval to the signing of an agreement on cooperation in agriculture and allied sectors between India and Portugal," said the Cabinet release.

A Joint Working Group having representatives from both countries will be set up to develop guidelines and programmes for the execution of the MoU as well as priorities for future cooperation, and also monitor implementation, the release said.

"The agreement shall enter into force on the date of its signing and shall remain in force for five years. It shall be automatically extended for another five years unless either party gives a written notice through diplomatic channels to the other party about its intention to terminate the agreement at least six months before its expiration," the release added.

Portugal Prime Minister Antonio Costa will pay a state visit to India from January 6-12. The two leaders will hold official talks on January 7 in New Delhi.