The ARG Presidential Palace officials rejected earlier reports suggesting the draft agreement has been terminated.
Ajmal Obaid Abidy, spokesman for President Mohammad Ashraf Ghani, said both parties and head of agencies from the two countries will sign the agreement once it has been finalized.
The draft agreement was reportedly signed by the Afghan and Pakistani officials earlier last week.
Earlier reports suggested that the agreement will allow Afghan and Pakistani intelligence to share information and jointly fight terrorism in the region.
Reports also added that the agreement will also allow ISI to train and equip the Afghan Intelligence – National Directorate of Security (NDS) personnel.
However, the Presidential Palace and NDS officials rejected the reports concerning the training and equipping of NDS personnel as baseless.
NDS spokesman Haseeb Sediqi earlier said the Memorandum of Understanding (MoU) signed with Pakistan is not against the national interests of the country and the agreement was concluded based on previous mutual cooperation between the two nations.