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 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.

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

Turkish President Recep Tayyip Erdogan revealed that Somalia and Ethiopia have come to a mutual understanding to address their dispute

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.

Erdogan, who has known both leaders for years, has invested heavily in Somalia since 2011. Turkey has established a military base in the country, trained thousands of Somali soldiers, managed Mogadishu’s airport and port, and provided extensive humanitarian and military aid.

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.

Somali President Hassan Sheikh Mohamud was heading to Ankara, Turkey, to attend the third round of talks aimed at defusing tensions with Ethiopia, the state news agency reported on Tuesday, in a row that threatens to destabilise the region.

The dispute between began January 1 when Somaliland’s president, Muse Bihi Abdi, and Ethiopian Prime Minister Abiy Ahmed signed a "historic" memorandum of understanding to lease 20 kilometers of seafront to Ethiopia for 50 years,