The pact, similar to those already in place between the US and Britain, Canada, Israel and Singapore, will focus on areas such as "identifying and detecting terrorists and terrorist groups, foiling their efforts, neutralising their weapons, and reducing the probability of terrorist incidents," a Pentagon report said.
Australia is among the closest of US allies in the "war on terror" and the agreement came on the penultimate day of Australian Prime Minister John Howard's visit to the US.
The memorandum of understanding for closer counter-terrorism collaboration was signed at the Pentagon by Thomas O'Connell, US assistant secretary of defence for special operations and low-intensity conflict, and Peter Shergold, Australia's secretary for the Department of Prime Minister and Cabinet.
Mr O'Connell called it "significant," paving the way for sharing "more sensitive, proprietary information."
The MOU provides cost sharing over the next 10 years for combined research and development across technology areas and activities in battling terrorism, the report said.
It enables the US to "tap into Australia's extensive technological, intelligence and special operations capabilities to better serve war-fighters and first responders on the front lines against terror," said Henry Crumpton, the State Department's counterterrorism coordinator.
"This advances the partnership between our two countries in a very tangible way," he said.
Mr Shergold said the agreement "continues the process of binding together two strong allies" and "offers a real opportunity for us to work together at the preventive end."
Mr Howard and Mr Bush on Tuesday reaffirmed their commitment on the war on terror following extensive talks at the White House.
Prime Minister Howard, whose meeting with President Bush is the seventh since the US leader was first elected to office in 2000, had provided staunch support for the US-led invasion of Iraq three years ago.