Iran and Saudi Arabia have agreed to resume diplomatic relations and re-open embassies within two months, state media in both countries reported on Friday.

The Foreign Ministers will first meet to arrange the exchange of Ambassadors and discuss ways to enhance ties, according to a joint statement carried by state media in Iran and Saudi Arabia.

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 regional proxy conflicts, including in Syria and Yemen. 

– dpa