"This cooperation will rapidly bring our region to the political, cultural and economic fore," which is "in the interest of peace and stability" in the region, Ahmadinejad said.

President Gul said there were "no obstacles to the development of cooperation between the two countries."

"We had detailed discussions on key issues of mutual interest and important decisions have been taken," Gul said.

"We have decided to give orders to our respective parties to remove all obstacles" identified in the talks as hindering cooperation between the two countries, he said without elaborating.

Gul arrived in Tehran on Sunday evening for a four-day official visit, heading a delegation of business leaders and ministers including Foreign Minister Ahmet Davutoglu.

Ahmadinejad took the public opportunity to thank "the Turkish president for his country's position concerning Iran's nuclear rights."

Ankara has come to the defence of Iran while mediating difficult negotiations with major powers about the Islamic republic's controversial nuclear programme.

Turkey recently said it would not apply US economic sanctions against Tehran, saying it would only respect measures passed by the United Nations Security Council.