Spain's Telefonica has withdrawn a complaint against the Argentine government over tariffs, paving the way for a broad agreement on pricing in the Latin American country, a Telefonica spokesman said.

In 2003, Telefonica, along with around 20 other foreign companies operating in Argentina, filed complaints against the federal government with the International Centre for Settlement of Investment Disputes related to the freezing of tariffs in Argentina in 2002.

"The complaint has been withdrawn and we are trying to move forward with the agreement signed with the Argentine government in 2006 over tariff adjustments," the Telefonica spokesman said, confirming a report in Spanish newspaper Cinco Dias.

Earlier in the year, Telefonica signed a letter of intent with the Argentine government offering to make new investments in the country in exchange for a commitment to renegotiating prices in the future.