President Touadera in the presence of his Sudanese counterpart penned his signature on the agreement on Tuesday evening following weeks of talks with representatives from rebel groups active in CAR.
The signing ceremony was witnessed by the chairperson of the African Union, Moussa Faki and UN officials.
The deal, which focuses on power-sharing is aimed at putting a definite end to a bloody civil war in the Central African Republic that has cost thousands of lives and forced at least one million people out of this country of five million inhabitants since 2013.
Speaking at the ceremony, President Touadéra praised the deal and called on the armed groups to return to the capital Bangui to start implementing the peace agreement on the ground.
He said the AU-brokered agreement opens the way for lasting stability for the people of CAR and urged the beginning of a new chapter of understanding among citizens of the country.
The CAR leader thanked Sudan, Chad, Cameroon, Gabon, Rwanda, Congo and Equatorial Guinea for their continuous effort to bring peace in his country.
The chairperson of the African Union, Moussa Faki Mehemet, warned that the agreement would be limited unless all parties to it remain committed to it by striving to implement its details.
President Bashir called on the international community to back the CAR peace deal.