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.

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",

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.

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