The majority of funds will come from the Federal Gas Tax Fund and primarily benefit municipal infrastructure projects around Quebec.
Couillard also announced that Quebec would contribute an additional $2.5 billion to the fund over the next 10 years.
The money was already expected and today's announcement saw the two government's sign the renewed agreement.
Harper said the Gas Tax Fund provides "predictable, stable and long-term funding" for municipalities across Canada.
It will also create jobs, the prime minister said.