Last month, Jordan facilitated Modi's transit to Palestine in what was the first ever Indian prime ministerial visit to the West Asian nation.
Jordan, he said, is working with the world for peace. The Jordanian King also told PM Modi that India has an "international role".
The topic - "Islamic heritage; Promoting Understanding and Moderation" has been selected by the king himself, the sources said.
"Terrorism is a matter of great concern for both sides and it was discussed at length", said TS Tirumurti, Secretary (Economic Relations) in Ministry of External Affairs.
He also emphasized the need to "recognize and reject the misinformation groups promote about Islam, or indeed any religion".
PM Modi, on the other hand, not only prided himself on India's syncretism but appeared to reach out to India's Muslim population with his sugar-coated words and cherry-picked examples to show the contribution of India to Islam as the "cradle".
Speaking at the event, Prime Minister Narendra Modi stressed that India embraced many religions and that every religion flourished in the country, adding that India is proud of its pluralistic heritage.
A third pact on setting up a fertilizer production facility in Jordan "with a long-term agreement for 100% offtake to India" was also signed.
Modi and Abdullah held discussions on defense cooperation, a twinning agreement between archaeological sites in Agra and Petra (Jordan), establishment of a centre for excellence in Amman by the Centre for Development of Advanced Computing (C-DAC), and some agreements on health, culture and customs.
The king also visited the National Security Guard (NSG) campus, where he was given a demonstration of the elite fighting squad's capability.
"Because of their actions, very few non-Muslims understand the real difference between Islam as it has always been, and the distorted perversions of the religion today", he said. Those who perpetrate crimes against humanity do not realise that they undermine the religion in whose name they claim to stand for, Modi added.
King Abdullah said, "We have to take the airwaves back from the extreme elements, which are luring the youth and teach them about the world's shared civilisation". "It is between moderates, of all faiths and communities, against extremists whose faith is hate and violence". "Rather, it is aimed against that mindset that is misleading our youth into torturing innocent people".
His Majesty King Abdullah II on Wednesday attended the Jordanian-Indian Business Forum, which was convened in New Delhi, with the participation of more than 300 businessmen and women, investors and corporate representatives from both countries.