A key agreement protocol is a key establishment technique which enables two or more communicating parities to agree on a key or exchange information over an open communication channel. Due to the complicated mathematical structure and deterministic nature of the fractal functions that meet the cryptographic requirements, and taking the security threats and privacy issues into consideration, a new key agreement protocol based on Iterated Function Systems (IFS) is proposed to provide techniques and tools that may be useful for developing cryptographic protocols. The proposed protocol is a generalization of the Diffie Hellman (DH) protocol. It is designed to overcome some of the drawbacks of several previously proposed key agreement protocols. The experimental results and security analysis shows that the proposed scheme provides an essential security requirement, where their efficiency makes it easier to be applied alone or hybrid with other security methods.