TEHRAN - Iran and Bahrain have started talks on the release of Iran's assets which are currently frozen in Bahrain, the official news agency IRNA reported on Monday.

"Effective" negotiations were held on the release of the Iranian assets on Sunday between the vice-governors of the central banks of Iran and Bahrain prior to a trip by Bahraini Foreign Minister Abdullatif bin Rashid Al Zayani to Tehran, IRNA quoted the Central Bank of Iran as saying.

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During the negotiations, the two sides agreed on the release of Iran's frozen money to take place within a technical framework and with mutual respect, according to IRNA.

The two sides also discussed the primary causes of the issue and explored methods to identify and overcome the obstacles hindering the release of Iran's frozen funds, said the report.

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It added the negotiations would continue until the release of the frozen assets.

In July 2021, Bahrain's High Criminal Court issued a verdict to confiscate nearly $1.3 billion worth of Iranian funds in the country based on money laundering charges, which were rejected by Iranian officials.

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Early in the day, Iran and Bahrain announced in a joint statement that they had agreed to start talks on the resumption of bilateral political relations following an eight-year diplomatic freeze, according to the Iranian Foreign Ministry.