Addressing the government's meeting in Zagreb on Thursday, Minister Ivan Simonovic said it would be the first agreement of this kind to be followed by a series of agreements with other countries in southeastern Europe.
Negotiations to this effect have been conducted for more than one and a half years.
The minister recalled that Croatia had recently amended its constitution, eliminating the provision on the ban on the extradition of its own citizens.
"Now when obstacles in the case of Croatia have been removed we can expect the conclusion of such agreements with all countries in the region which will also remove obstacles in their internal judicial systems," Simonovic said.
Croatia and Serbia are to ink the agreement on 29 June.
The document will be provisionally implemented immediately upon the signing ceremony and the provisional implementation will last until the ratification of the document in the parliament, according to Simonovic.
Extraditions regulated by the agreement will be urgent and the entire procedure can take one to four months.
It will take one month if the person to be extradited agrees with their immediate extradition. Four months will be needed if somebody appeals and has good lawyers, the minister said.
He expressed hope that the agreements of this kind would soon yield concrete results in efforts to solve some of the most serious crimes in the region.
The agreements will also step up the fight against "regional organised crime" and connections between organised crime and corruption which the minister said cause big economic and social damage and destabilise the states.
The cabinet of Prime Minister Jadranka Kosor also today adopted several decisions on the implementation of the Economic Recovery Programme, such as the adoption of a catalogue of public investment projects and facilitation od conditions for operations of small enterprises.