The treaty, which was finalized Wednesday but still has to be signed, makes clear that the Holy See has switched its diplomatic relations from the Palestinian Liberation Organization to the state of Palestine.
The Vatican welcomed the 2012 decision by the UN General Assembly to grant official recognition to the Palestinian state. But the treaty is the first legal document negotiated between the Holy See and the Palestinian state and constitutes an official recognition.
Palestinian President Mahmoud Abbas is due to see Pope Francis on Saturday before the canonization of two new saints from the Holy Land a day later.