Based on locally indistinguishable orthogonal product states, we propose a novel multiparty quantum key agreement (QKA) protocol. In this protocol, the private key information of each party is encoded as some orthogonal product states that cannot be perfectly distinguished by local operations and classical communications. To ensure the security of the protocol with small amount of decoy particles, the different particles of each product state are transmitted separately. This protocol not only can make each participant fairly negotiate a shared key, but also can avoid information leakage in the maximum extent. We give a detailed security proof of this protocol. From comparison result with the existing QKA protocols, we can know that the new protocol is more efficient.
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