President Jamil Mahuad of Ecuador and his Peruvian counterpart, Alberto Fujimori, have announced that they will meet later this month to begin demarcating their common border.

They will place border posts at a previously disputed stretch of the frontier as part of moves towards ending a long-running conflict.

The announcement followed talks on Monday between Mr Mahuad and Mr Fujimori in Brasilia, where they discussed progress in implementing a peace treaty signed last October.

The agreement, brokered by Argentina, Brazil, Chile and the United States, is expected to pave the way for large-scale international investment in the impoverished border area.