The power-sharing document 'One Wales' commits a Labour-Plaid administration to moves towards a Welsh Parliament with full-law making powers.
It promises help for first-time house-buyers, pensioners and students and a review of NHS reconfiguration.
The four year programme pledges to increase the supply of affordable housing and improve road and rail links between north and south Wales.
The deal needs approval at special party conferences on 6 and 7 July.
Under the deal Labour First Minister Rhodri Morgan would see Plaid leader Ieuan Wyn Jones become his deputy, subject to the agreement of AMs and, under the constitutional arrangements, the Queen's approval.
In the 43-page document's foreword, Mr Morgan and Mr Jones said it delivered "a progressive, stable and ambitious programme for government over this assembly term".
They continued: "The prize which it delivers is simply to deliver the sort of fair, prosperous, confident and outgoing Wales which its citizens deserve and demand".
On the sensitive issue of giving the Welsh assembly full law-making powers, a referendum on the issue is promised "as soon as practicable, at or before the end of the assembly term (in 2011)".
Labour and Plaid have agreed "in good faith to campaign for a successful outcome to such a referendum".
A group of MPs and AMs from both parties, within six months, set up an "all-Wales Convention" to hammer out the details of how Welsh devolution could be extended.
According to the document "both parties will then take account of the success of the bedding down of the use of the new legislative powers (which came in after last May's election) already available and, by monitoring the state of public opinion, will need to assess the levels of support for full law-making powers necessary to trigger the referendum".
The cover of the One Wales document agreed by the two parties
A "new approach" is promised on NHS reconfiguration including a "moratorium on existing proposals for changes at community hospital level".
Changes in district general hospital services "will not be implemented unless and until relevant community associated services are in place".
A commission would be established to tackle climate change.
The Labour-Plaid administration would "aim to achieve carbon-reduction equivalent emissions reductions of 3% per year by 2011 in areas of devolved competence".