Burma and Bangladesh have given final approval to a road link between Rangoon and Dhaka.
Under the agreement, Bangladesh will fund the construction of 20 kilometers of the road on the Burmese side of the border in addition to its own section.
Burma is conducting a survey of the proposed route and will submit the results to Bangladesh next month.
Burma's prime minister laid the foundation stone for the proposed friendship road at Ramu in April of last year.