Information about an agreement comes from diplomatic sources referring to behind-the-scenes negotiations ahead of the military alliance's summit in the Dutch city of The Hague next week.
Spain's Prime Minister Pedro Sánchez says that the country avoids having to raise defense spending to five percent.
Spain has just reached an agreement with NATO, which allows us to respect our commitments (to the military alliance) without having to increase our defense spending to five percent of gross national product, says Sanchez in a statement from the Prime Minister's palace Moncloa in Madrid.
Spain has constantly opposed the increase required by US President Donald Trump, who has received support from NATO Secretary General Mark Rutte.
Several diplomats say that the agreement, which is expected to be presented at the summit, means that NATO countries will agree to earmark 3.5 percent for direct military spending for the next decade, and add another 1.5 percent to "defense-related" spending.
According to news agency AFP's sources, such spending may concern costs for IT security and infrastructure, which has been included in, among other things, the Spanish negotiating demands.