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Key management is a key concern for security operation in sensor network. Most existing key management schemes try to establish shared keys for all pairs of neighbor sensors, no matter whether these nodes communicate with each other or not, and causes large overhead. In this paper, we propose a novel key agreement protocol based on pairing-based cryptography. The proposed protocol reduces the key spaces of the nodes, in fact nodes do not need to store any key of the other nodes rather it computes secret sharing key by using pairing and identity based properties. Security analysis shows it robust against different attacks such as masquerade attack, wormhole attack, selective forwarding attack and message manipulation attack.