Islamabad, Jan 22 (IANS): Days after Pakistan and Iran were on the verge of a major conflict, the two countries decided on Monday to restore full diplomatic relations with the return of ambassadors to their respective capitals later this week, a medis report said.

"Following the telephone conversation between the Foreign Ministers of Pakistan and the Islamic Republic of Iran, it has been mutually agreed that ambassadors of both countries may return to their respective posts by January 26," said a joint statement simultaneously issued by Tehran and Islamabad, Express Tribune reported.

Also importantly, at the invitation of Foreign Minister Jalil Abbas Jilani, Foreign Minister of Iran, Hossein Amir Abdollahian, will undertake a visit to Pakistan on January 29, the statement added, the report said.

The two countries would decide the future course of action and work on a new mechanism to prevent the recurrence of events of the last week.

Pakistan and Iran may often boast about the "friendly and brotherly" relations, but underneath does exist certain issues that cause suspicion in both the capitals.

At the heart of the problem are the concerns both sides often expressed privately about the use of each other’s soil by certain terrorist groups.

Pakistan has longstanding concerns that Baloch terrorist outfits find refuge across the border in the Sistan-Balochistan province of Iran. Tehran, on the other hand, pointed a finger at anti-Iran militant groups such as Jaish al-Adl having hideouts in Balochistan province in Pakistan.

Iran gave the same justification for carrying out cross-border missile strikes under the pretext that it was aimed at Jaish al-Adl hideouts, Express Tribune reported.

Pakistan, in retaliation, conducted strikes and pounded with bombs what it said were the sanctuaries of Baloch terrorists. Iran admitted that those killed in Pakistani strikes were not Iranians.