Prime Minister Yoshiro Mori and visiting Iranian President Mohammad Khatami have agreed to expand economic cooperation in a wide range of areas and to increase dialogue.
During Wednesday evening talks at the Prime Minister's Official Residence, Mori also expressed Japan's strong support for Iran's domestic reform efforts and those aimed at improving ties with the international community, government officials said.
The two leaders welcomed an agreement reached earlier in the day that gives Japan preferential negotiating rights in developing the Azadegan oil field in Iran.