"It was decided that the two countries' joint investment company be established to pioneer in implementing joint ventures," Nahavandian said Wednesday, adding that details of the move would be finalized next week, Farsnews reported.
He said that the two sides have also reach agreement on launching joint venture projects in the field of industries.
Elsewhere, Nahavandian pointed to the effective role of Iran-Iraq Joint Chamber of Commerce, and said the Iraqi side is also slated to establish a Joint Chamber of Commerce in Iraq.
The two sides have also clinched an agreement on building industrial towns at Iran-Iraq borders.
Iran and Iraq have enjoyed growing ties ever since the overthrow of the former Iraqi dictator, Saddam Hussein, in 2003.
Both sides are working on a series of plans to take wide strides in expanding their ties.
Early in July, Iran and Iraq agreed to boost the value of their trade exchanges to $20bln in the near future.
"We agree to increase the value of mutual economic and trade exchange, which is expected to reach 10 billion dollars by the end of the current year, to 20 billion dollars in the near future," Iranian First Vice-President Mohammad Reza Rahimi told reporters in the Iraqi capital, Baghdad at the time.
The two countries inked six Memoranda of Understanding (MoUs) to expand cooperation in various sectors such as information technology, health and medication and culture.
The documents were signed by the Iranian vice president and Iraqi Prime Minister Nouri al-Maliki in Baghdad.