Heading a high-ranking delegation, the Iranian president is expected to travel to Baku on Wednesday or Thursday.
During his visit, Rouhani will meet with his Azeri counterpart Ilham Aliyev and will also deliver a speech to the Muslim country’s parliament.
Trade delegations from five different Iranian provinces will reportedly accompany President Rouhani in his trip.
Among the major issues to be discussed are said to be Iran’s purchase of electricity from Azerbaijan, settlement of customs problems, the two neighbors’ share of border rivers, gas talks and tourism.
Back in April this year, Aliyev paid a visit to Tehran to consult with senior Iranian officials on bilateral and regional issues and enhancement of mutual relations.
High-ranking officials from the two countries signed three memoranda of understanding and a cooperation agreement during his visit to Iran at the time.
Trade turn over between the two countries amounted to $281.03 million in 2013, which is 6.13 percent higher than the year before.