Under the new arrangement, which comes into effect on 17 September, one charity will be allowed to operate in one section of Cheltenham High Street on Tuesdays, Thursdays and Fridays. A maximum of four fundraisers will be allowed.
Phil Cooper, a licensing officer at the council, said: "Until now, face-to-face fundraisers have had only an informal arrangement in Cheltenham.
"It is hoped that the new agreement will strike a balance between the needs of charities to fundraise and the wishes of the members of public who want to go about their business without being inconvenienced."
A spokesman for the PFRA said this was the 49th agreement it had made with councils governing street fundraising, and another four were in the pipeline.
"We’re hoping to get similar agreements with most councils," he said.