Vodafone Egypt has signed a new three-year contract to use Telecom Egypt's international gateway for its overseas traffic, the Ministry of Communications said in a statement.

Fixed line monopoly Telecom Egypt is expected to earn 4 billion Egyptian pounds ($723 million) from the agreement, which takes effect immediately, the statement said.

TE has a similar agreement with Egyptian mobile operator Mobinil. The country's third mobile operator, Etisalat Egypt, bought its own gateway licence from the Egyptian government in 2007.

TE, which owns a 45 percent stake in Vodafone Egypt, had signed an earlier gateway agreement with Vodafone Egypt in 2006.

($1 = 5.5291 Egyptian pounds)

(Writing by Patrick Werr; Editing by Hans Peters