The deal upgrades the EU's relationship with Egypt to a strategic partnership.

Grants, loans and other funds are due to be delivered over the next three years to support Egypt's faltering economy.

The country’s ongoing financial crisis has prompted an increasing number of Egyptians to try to cross to Europe, mainly via Libya, since the authorities have largely closed down the route from Egypt's north coast.

Egypt committed to curbing irregular migration to Europe.

"This shall encompass tackling the root-causes through development-focused solutions and improving regular migration routes," Egypt's President Abd el-Fattah al-Sisi said.

The EU has in the past signed similar deals with other African countries that act as popular routes for irregular migration to Europe, including Tunisia, Libya and Mauritania.