Regions wield significant powers in key areas such as health, education and housing in Spain's decentralised political system, making the deal a potential bellwether for the national vote.
The mainstream conservative Popular Party (PP) won the most seats in a regional election in March in Castilla y León but fell short of an absolute majority, and needed the support of far-right Vox to form a government.
Under a deal reached Wednesday, the PP secured the support of Vox in exchange for accepting part of the far-right party's platform, including the principle of what it calls "national preference" in the delivery of public services.
This policy would grant priority access to certain public services and benefits based on what it describes as the "real attachment" of individuals to the territory.
READ MORE: What is the Spanish right's 'national priority' policy for Spaniards?
The agreement drew immediate condemnation from Spain's Socialist central government, with Digital Transformation Minister Oscar López calling it a "national disgrace".
The PP and Vox has struck similar deals to govern in two other regions recently - Aragón and Extremadura.
Vox withdrew in 2024 from five regional governments where it had been in coalition with the PP, citing a dispute over the distribution of unaccompanied migrant minors.
Spain's next general election is due by mid-2017.
Most polls suggest the PP would win but would need Vox's support to form a governing majority in Spain's increasingly fragmented parliament.
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