Local media reports state that Iran and Saudi Arabia have agreed to resume diplomatic relations and re-open embassies within two months.
According to reports, the Foreign Ministers of bor countries will first meet to arrange the exchange of Ambassadors and discuss ways to enhance ties.
The deal came following talks held in China since Monday.
Saudi Arabia severed diplomatic relations with regional rival Iran following an attack by Iranian Islamists on the Saudi embassy in Tehran in 2016.
Both countries have faced off in regional proxy conflicts, including in Syria and Yemen.
