The agreement was reached after talks in Beijing between top security officials from the two rival Middle East powers.
"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.
Iranian and Saudi media said a statement by the two countries emphasized respect for sovereignty and non-interference in each other's internal affairs.
Saudi Arabia's state news agency said they also agreed to activate a security cooperation agreement signed in 2001, as well as another earlier accord on trade, economy and investment. READ MORE
