Eritrean President Isaias Afwerki and Ethiopian Prime Minister Abiy Ahmed signed a peace pact in July.
Abiy, Isaias and Somali President Mohamed Abdullahi Mohamed have signed an agreement to "build close political, economic, social, cultural and security ties".
It remains unclear when the heavily militarised Ethiopia-Eritrea border will formally open or when Ethiopian forces will withdraw from the disputed areas.
ADDIS ABABA,
Ethiopia reopened its embassy in the Eritrean capital on Thursday, state media reported, the latest step in restoring ties after the two nations ended decades of conflict.