Shanghai took a fresh step in deepening its digitalization push on Monday by inking a cooperative agreement with internet giant Tencent Holdings Ltd.

The municipality pledged to work closely with Tencent in realms like artificial intelligence, big data and cloud computing in a bid to shore up the real economy and bolster the construction of the smart city initiative, according to a government statement.

The collaboration also would contribute to coordinated growth in industrial development, social governance and civic services across the Yangtze River Delta region, which includes neighboring Jiangsu, Zhejiang and Anhui provinces in East China.

In a meeting with Tencent chairman Pony Ma in Shanghai, city Party Chief Li Qiang said Tencent's business scope and strengths overlap with the municipality's goal to build a modern socialist metropolis with global influence.

Li welcomed Tencent to take an active part in the inaugural World Artificial Intelligence Conference scheduled for September in Shanghai, and showcase its latest technologies, products and business models that can be adopted through pilot zones in the city.

This is Shanghai's second major tie-up with a major internet player in a week. The municipal government signed a strategic partnership Thursday with Alibaba Group Holding Ltd to cooperate on technology, retail and internet finance matters.