Qatar and Sudan are set to sign a $4 billion agreement to jointly manage and develop a Red Sea port, Sudan's Transport Minister Makawi Mohamed Awad was quoted by local media as saying.
The minister's announcement about the Suakin port came while Qatari officials were in Sudan on Sunday.
According to Qatari transport officials in the visiting delegation who spoken to Reuters, both countries have discussed the agreement but are yet to finalise costs and other particulars.
The deal comes amid the continued Saudi-led boycott of Qatar, which has seen Saudi Arabia, the United Arab Emirates, Egypt and Bahrain cut ties with the Gulf state over its alleged support for terrorism.
Sudan recently began strengthening relations with its northern neighbout following a period of strain between Khartoum and Sudan.
Tensions had risen when Sudan appeared to take Ethiopia's side in the dam negotiations and revived a longstanding border dispute with Egypt.
Earlier this year, Sudan had also recalled its ambassador in Egypt, however returned the envoy to Cairo ealier this month.