Israeli Prime Minister Ariel Sharon and Russian President Vladimir Putin decided during their meeting in Jerusalem Thursday to significantly increase intelligence cooperation between their two countries.
"We are strategic allies when it comes to anything to do with (the war against) terror," Putin told Sharon.
The two leaders decided to set up a joint mechanism to battle terrorism.
Putin also promised Sharon during their three-hour meeting that Russian weapons will not endanger Israel.
One major issue raised by Sharon during the meeting was Israeli fears that Russian weapons to be sold to Iran and Arab countries would endanger the safety of Israel.
"Russian weapons will not endanger Israel," the Russian president told Sharon.
Putin also said that "a nuclear Iran worries us just as much as it does you," reiterating comments he made earlier in the day.
Sharon said he hoped the visit will improve relations between the two country.
Putin landed in Tel Aviv on Wednesday night on a unprecedented visit to Israel by a Russian head of state.
Apart from the historical significance, the state visit has been overshadowed by two diplomatic contretemps: an Israeli rejection of Putin's proposal for an international conference for Mideast peace this fall and Israeli objections to Russia's plans to sell armored troop carriers to the Palestinian National Authority and anti- aircraft missiles to Syria.
The Russian president is scheduled to leave the country Friday and head for the West Bank city of Ramallah where he will meet with PNA Chairman Mahmoud Abbas who welcomed his proposed peace conference.