The draft was agreed and finalized after four days of negotiations with a visiting Iraqi delegation in Tehran, Azizollah Ramezani was quoted by Shana as saying on Saturday.
He emphasized that the draft will be sent for top energy officials of the two countries and once it is signed, Iran will start supplying Iraq with natural gas.
The official further said according to the deal, Iran's gas exports to Iraq will start with a volume of four million cubic meters per day (mcm/d) and will gradually reach 25 mcm/d.
Iranian and Iraqi oil ministers on July 21, 2013, signed the first deal to transfer Iran’s natural gas to two Iraqi power plants.
The project is aimed at supplying Al-Baghdad and Al-Mansouriyah power plants in Iraq with 25 mcm/d of natural gas.
Iran, which has the largest gas reserves in the world, seeks to enhance gas production by increasing foreign and domestic investments.