The bilateral accord is due to facilitate development and infrastructure aid to Afghanistan delivered through the Turkish International Cooperation Agency.
At a joint news conference with his Turkish counterpart, Ahmet Necdet Sezer, Karzai expressed appreciation for Turkey's assistance and urged greater investments from Turkish firms.
Sezer promised his country will continue to help Afghanistan's development and security.
During his two-day visit, Karzai is also scheduled to meet with Prime Minister Recep Tayyip Erdogan, General Hilmi Ozkok -- head of the Turkish military -- and Foreign Minister Abdullah Gul.
The talks are expected to focus on rebuilding Afghanistan.
Karzai is the first Afghan head of state to visit Turkey in 48 years.
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