Iranian Foreign Minister Ali-Akbar Salehi and Turkmen Foreign Minister Rashid Meredov held a meeting here on Tuesday.
During the meeting the two sides discussed boosting economic ties, the Mehr News Agency reported.
Salehi praised relations between the Islamic Republic of Iran and Turkmenistan and said Tehran and Ashgabat can expand cooperation in many areas, including anti-drug measures, energy, electricity, railway and power plant construction, Press TV reported.
The Iranian official also called for more cultural, educational and tourism cooperation with Turkmenistan.
According to Salehi the two countries current trade value stands at $4 billion.
"The Ashgabat five-side agreement (which establishes a Central Asia-Persian Gulf transit corridor) offers a promising prospect for economic and transit cooperation as well as a bright future for regional development, welfare and stability," Salehi said at the meeting.
Meredov, for his part, said that Iran was Turkmenistan's first trade partner and added that his country was willing to expand ties with Iran in political, economic, cultural, anti-drug campaign, energy, power and tourism sections.
Salehi arrived in the Turkmen capital, Ashgabat, on Sunday to attend a meeting of foreign ministers of Turkmenistan, Uzbekistan, Qatar and Oman on international transportation and goods transit cooperation.
The five foreign ministers on Monday signed an agreement on transportation and the transit of goods via railway, sea and land.
The deal establishes a transit corridor which connects the Persian Gulf and Central Asia and facilitates the transit of goods between regional countries.
"I'm sure this agreement will have favorable and constructive results for regional nations, and will offer the five nations (Iran, Turkmenistan, Oman, Qatar and Uzbekistan) useful and ideal opportunities in launching international transit services," Salehi said at the Monday meeting.
He also expressed hope that other countries would join in as well.
Salehi had previously said that the Islamic Republic is cooperating with Turkmenistan and Kazakhstan to build a railroad linking the three countries.