The agreement, sealed on Tuesday, envisions cooperation in education, exchange of personnel and military know-how.

Croatian Defense Minister Branko Vukelic hails the agreement as "a step forward" in stabilizing the whole region.

Serbia backed minority Serbs in Croatia in their 1991 rebellion against Croatia's independence from Yugoslavia, triggering a four-year-long war. Some tensions still persist, stemming from the wartime past.

Croatia joined NATO last year.

Serbia, an ally of Russia, is a member of NATO's auxiliary program. Its defense minister, Dragan Sutanovac, says that's "sufficient" for now.