The agreement reportedly came after talks held in the Chinese capital Beijing.
“As a result of the talks, Iran and Saudi Arabia agreed to resume diplomatic relations and re-open embassies … within two months,” Iranian news agency IRNA reported on Friday.
Nour News, which is linked to Iran’s Supreme National Security Council, posted images and video it described as being taken in China with the meeting. It showed Ali Shamkhani, the council’s secretary, with a Saudi official and a Chinese official that state TV named as Wang Yi.
“After implementing of the decision, the foreign ministers of the both nations will meet to prepare for exchange of ambassadors,” Iranian state television said.
There was no immediate confirmation from Saudi media.
Saudi Arabia broke off ties with Iran in 2016 after protesters invaded Saudi diplomatic posts there.
Saudi Arabia had executed a prominent Shia cleric days earlier, triggering the demonstrations. (AlJazeera)