"Talks and meetings are continuing between the two countries, but we must not rush this question," MENA said Larijani told a joint news conference with Arab League Secretary General Amr Mussa.

Diplomatic relations between Iran and Egypt were broken 27 years ago in 1980 following the Islamic revolution in protest at Cairo's recognition of Israel and hosting the deposed shah.

"Contacts between Egypt and Iran on this question have brought positive results," Larijani added.

Iranian President Mahmoud Ahmadinejad has said he favours resuming ties which would be "in the interest of the two peoples."

Egypt's foreign ministry spokesman Hossam Zaki told AFP that differences between Cairo and Tehran centred on security and regional issues.

"Progress must be made on this before a resumption of relations," he said, adding that "talks are continuing between the two countries to resolve questions preventing a resumption of full diplomatic relations."

Larijani has been on a private visit to Egypt with his family since Monday, but he has also had several meetings with senior officials, including intelligence chief Omar Suleiman.

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