Ethiopia and Somalia have agreed to end their bitter dispute over Addis Ababa's plans to build a port in the breakaway republic of Somaliland following talks in Turkey. Turkish President Recep Tayyip Erdogan welcomed the "historic agreement",

The leaders of Ethiopia and Somalia have agreed to hold “technical talks” to resolve a dispute sparked by Ethiopia’s deal with Somalia's breakaway region of Somaliland.

Somalia and Ethiopia said they would work together to resolve a dispute over Addis Ababa's plan to build a port in the breakaway region of Somaliland, which had drawn in regional powers and threatened to further destabilise the Horn of Africa.

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Ethiopia had earlier signalled a willingness to recognise Somaliland’s independence in exchange for a strategic strip of land near the Red Sea and Indian Ocean intersection

The new agreement comes even as sources close to US President-elect Donald Trump say his administration is likely to recognize Somaliland’s independence.

Ethiopia and Somalia on Wednesday agreed to hold “technical talks” to resolve a dispute sparked by Ethiopia’s deal with Somalia’s breakaway region of Somaliland, according to a statement following talks in Turkey.

Turkish President Tayyip Erdogan held separate meetings with the leaders of Somalia and Ethiopia on Wednesday as part of his efforts to resolve a dispute between the two Horn of Africa neighbours at odds over the breakaway Somaliland region.

Ethiopia and Somalia agreed to lower tensions over a deal that would allow Addis Ababa to build a military base on the coast of the breakaway region of Somaliland in exchange for a stake in its national airline.