An ideal traffic control system should consider simultaneously both route guidance of vehicles and signal policies at intersection of a traffic network. It is known that an iterative procedure gives an optimal route to each vehicle in the network. This paper presents an iterative procedure to find an optimal signal plan for the network. We define the optimal solution as a signal equilibrium. From the definition of signal equilibrium, we prove that the fixed point solution of the iterative procedure is a signal equilibrium, when optimal signal algorithms are implemented at each intersection of the network. A combined model of route guidance and signal planning is also suggested by relating the route guidance procedure and the signal planning procedure into a single loop iterative procedure.