Maldives and China have signed an agreement on agricultural and research project cooperation that will provide grant to the farmers of the Indian Ocean group of islands, the Foreign Ministry said in a brief statement on Friday.

The agreement was signed between the two governments on Thursday.

"Under the terms of the agreement, the government of China shall extend to the government of Maldives, a grant aid of 1 million yuan (about 160,000 US dollars). The aid will be utilized to develop the agriculture sector," the Foreign Ministry said in a press release.

Present at the signing ceremony was Foreign Minister Dunya Maumoon alongside Chinese Ambassador Wang Fukang, with senior officials from the fisheries and foreign ministries also present.

Earlier this week, the Chinese ambassador also took part in a ceremony inaugurating a bilateral training seminar involving Chinese and Maldivian police officers to be held in Shanghai this month.

Twenty senior Maldives police officers will attend a training session in China as part of the program.

Maldives and China have been strengthening relations over the past few years bolstered by massive tourist arrivals from the world's fastest growing economy. Chinese arrivals add up to about a quarter of Maldives's lucrative tourism industry.