The news comes soon after Ericsson announced that it is reorganizing the company's licensing department in an effort to make more money from its patents.
Ericsson aims to increase revenue from licensing its intellectual property portfolio beyond the 4.6 billion Swedish kronor (US$676 million) its patents generated for the company in 2010.
The company's IPR portfolio includes over 27,000 patents. Today, any vendor that wants to use cellular connectivity in its products needs a license from Ericsson, offered under so-called fair, reasonable and non-discriminatory terms, which is what ZTE now has, it said.
ZTE representatives didn't reply to questions about the agreement.
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