Keen on substantially raising their cooperation in counter-terrorism, India and the 27-nation European Union are likely to sign an agreement on enhancing cooperation in the field when both sides meet for the summit level talks here this week.

"An agreement to enhance security cooperation may be signed between the two sides during the the summit," Lars-Olof Lindgren, Ambassador of Sweden said.

Prime Minister Manmohan Singh will hold summit talks with his Swedish counterpart Fredrik Reinfeldt whose country is the current chair of the European Union. He said EU's Counter-Terrorism Coordinator Gilles de Kerchove had held wide ranging talks with Indian officials here last month to explore possibility of broadening cooperation between the two sides on security related issues.

Intelligence sharing, research and development of skills of counter-terror security forces are some of the areas identified by Kerchove. The EU also wants to learn from India about how to curb financing of terrorists considering its experience in working against Hawala channels.

"The threats of terrorism and ways to tackle it will feature prominently in the discussions at the summit," the Ambassador said. Kerchove was here last month to "hear the lessons learned" from 26/11 and discussed the security issues with National Security Adviser M K Narayanan, Home Secretary G K Pillai and intelligence agencies including RAW.