The agreement was signed in Luxembourg on Monday by Croatian Ambassador Ljerka Alajbeg and Luxembourg Foreign Minister Jean Asselborn.
Under the agreement, Luxembourg undertakes to pay 150,000 euros to the Croatian Mine Action Centre for the mine clearance project.
This was the second bilateral agreement to have been signed by the two countries this year.
Since 2002, the Luxembourg government has financially supported six mine removal projects in Croatia, worth 650,000 euros in all. All the funds were paid directly into the account of the Croatian Mine Action Centre, which ensured the involvement of Croatian firms in the mine removal operations.