Armenia and Azerbaijan were locked in conflict over Nagorno-Karabakh for nearly four decades after the Soviet Union they were both members of collapsed.

Azerbaijan and Armenia said Thursday that they had wrapped up peace talks aimed at resolving the Caucasus neighbours' decades-long conflict, both sides having agreed the text of a possible treaty.

Armenia and The Azerbaijan Republic have reached an agreement on a peace treaty, marking a significant step toward ending nearly four decades of conflict between the two former Soviet republics, officials from both countries announced on Thursday.