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",

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

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.

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.

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.

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

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 have agreed to engage in talks to end a year-long dispute that has been a significant source of concern in East Africa.

Ethiopia had earlier signalled a willingness to recognise Somaliland’s independence in exchange for a strategic strip of land near the Red Sea and Indian Ocean intersection

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,