"It has already been approved by the cabinet. I am signing the Tifa in Washington on May 10," Rafidah was quoted as saying by the New Straits Times.

The Tifa is a precursor for a possible free trade agreement (FTA) between the two countries.

It will provide a forum and an opportunity for dialogue and consultations on trade and investment between Malaysia and US, thus enhancing commercial relations, Rafidah said.

"It will also increase private sector confidence in Malaysia as an attractive investment destination and trading partner," she added.

The Tifa will also provide an avenue for both parties to examine and consult on the possibility of having an FTA an at appropriate time.

Asked if it was possible that the FTA could be signed this year, Rafidah said: "No, once we sign the Tifa, then we start talking about how far we see both countries going towards a FTA."

Malaysia is also negotiating a closer economic partnership (CEP) accord with Japan, which will include an FTA expected to be realised within 10 years, Rafidah said earlier this month.

She said FTAs would improve market access for the countries involved and were a test of competitiveness for local companies.

Malaysia was initially concerned that bilateral FTAs could undermine the 10-member Association of Southeast Asian Nations (Asean) Free Trade Area (Afta) but officials said the country did not want to be left out of the race as economic rivals went ahead.