Riyadh cut relations after Iranian protesters attacked Saudi diplomatic missions in 2016 following the Saudi execution of revered Shiite cleric Nimr al-Nimr -- just one in a series of flashpoints between the two longstanding regional rivals.
The deal is expected to see Shiite-majority Iran and mainly Sunni Muslim Saudi Arabia reopen their embassies and missions within two months and implement security and economic cooperation deals signed more than 20 years ago.
Iranian foreign minister Hossein Amir-Abdollahian told reporters Sunday that the two countries had agreed to hold a meeting between their top diplomats.
He added that three locations for the talks had been suggested, without specifying which.
Several Gulf countries followed in Riyadh's footsteps in 2016 and cut off ties with Tehran, though the United Arab Emirates and Kuwait have recently restored ties.