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Nokia on Thursday announced a multi-year patent license agreement with Chinese telecom giant Huawei.

Details of the agreement were not disclosed, but Nokia officials said that patent-related revenue from Huawei would begin to be reflected in quarterly financial reports beginning in the fourth quarter of 2017.

Reuters reported that although the companies are rivals in the telecom network sector, the announcement gives the Finnish company patent agreements with each of the world's top handset makers. Huawei is among the world’s largest smartphone manufacturers and recently announced plans to expand in the U.S. in 2018.

The report added that licensing agreements tend to be very profitable, which will likely help Nokia as its network business struggles. Inderes analyst Mikael Rautanen told Reuters the deal could be worth more than 100 million euros each year.

"Huawei is one of China's largest companies and is among the world's leading smartphone manufacturers, and we are delighted to welcome them to our family of patent licensees," Nokia chief legal officer Maria Varsellona said in a statement.

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