Russia will construct and operate a 4,800MW nuclear power plant in Dabaa, on the Mediterranean coast of Egypt.
The power plant will have four units with a capacity of 1,200MW each.
An agreement to this effect was signed by Egypt Minister of Electricity and Energy Mohamed Shaker and Russia's Rosatom State Atomic Energy director general Sergey Kirienko, in the presence of Egypt President Abdel Fattah el-Sisi.
A memorandum of understanding was also signed between the Russian Federal Service for Environmental, Technological and Nuclear Supervision and the Egyptian regulatory body for nuclear and radiological safety, for further development of nuclear infrastructure in the African country.
Rosatom said that the intergovernmental agreement specifies about future nuclear fuel supply, terms on operation, maintenance and repair of NPP units, treatment of spent nuclear fuel, and training of personnel.
The company, however, did not reveal further details on the terms of the agreement.
Sergey Kirienko said: "NPP project in Dabaa will become the largest joint project between Russia and Egypt since the Aswan dam project; this is a sincerely new page in history of Russian-Egyptian intergovernmental relations.
"First NPP will make Egypt regional technological leader and the region's only country with NPP 3+ Gen technology."
The latest agreement is a result of the project development signed by Russian President Vladimir Putin and el Sisi in February.
Russia will also provide a 35-year loan to construct the plant, but the total estimated cost is not known.
El Sisi said that the country's balance sheet will not bear the cost of this loan. Instead it will be paid back through the production of electricity from the plant.