China and the European Union (EU) inked a technological agreement on Saturday in Beijing to substantially propel forward the Galileo Programme, a European global system of satellite navigation.

The agreement ensures China play a part in the development of the Galileo Programme -- from space and ground technology development to application and fund allocation.

The agreement is expected to further provide an operational framework for China's participation in the programme, sources from the Ministry of Science and Technology said.

China and the EU had agreed last year to allow China to join the big programme.

"China is the most advanced country of non-EU members to participate in the Galileo Programme," said Loyola de Palacio, vice-chairwoman of the European Commission, at the news conference on Saturday.

The technological agreement, reached by the Chinese National Remote Sensing Centre (NRSCC) and the Galileo Joint Undertaking (GJU), will make China's industrial circles a partner of GJU, said Rainer Grohe, the Executive Director of GJU.

"Chinese universities, institutes and industries have much experience in space and communication technologies, China's contribution will make the Galileo Programme more successful," he said.

Sources from the Ministry of Science and Technology said that China-EU co-operation on the Galileo Programme is China's largest international scientific co-operative project.

It will help expand China and EU co-operation on satellite radio navigation industries.

Vice-Minister of Science and Technology Ma Songde said technology used in the Galileo Programme can be used in various other industries, including communications for the 2008 Beijing Olympic Games.