Croatian President Ivo Josipovic held talks in Ljubljana on Friday with Slovenian Prime Minister Borut Pahor.
The two officials discussed bilateral relations, the situation in neighbouring countries, and economic cooperation.
A statement from Pahor's office said the two officials were agreed that relations between the two countries were improving in all areas, and that the strengthened mutual trust and the continuation of active political dialogue would help resolve the remaining outstanding issues.
Pahor said that by signing the border arbitration agreement the two countries had settled one of the most important issues and that he believed it would help solve the border issue in an equitable way.
Pahor and Josipovic also discussed economic cooperation and the strengthening of stability in the region, notably a regional conference which the Slovenian and Croatian governments proposed to organise in Slovenia at the end of next week.
Pahor said that the conference, to be hosted next Saturday at Brdo Pri Kranju by him and his Croatian counterpart Jadranka Kosor, was of great importance and would send a positive message to all neighbouring countries.
Josipovic and Pahor exchanged views on the most important international topics and Croatia's imminent admission to the European Union, supporting the continuation and strengthening of economic ties.
Josipovic, who was on a working visit to Slovenia, earlier in the day met his Slovenian counterpart Danilo Tuerk at Brdo Pri Kranju, and attended with him a meeting of Croatian and Slovenian business people there. He then travelled to Ljubljana to meet with PM Pahor and Parliament Speaker Pavel Gantar.