CAIRO, Jan. 6 (Xinhuanet) -- Iran and Egypt have agreed to restore full diplomatic relations severed 25 years ago, Iran's Vice President Mohammad Ali Abtahi said on Tuesday.

    "The two countries have decided to restore ties. It's a definite move and right now they are making the preparations," Reuters quoted Abtahi as saying.

    Earlier on Tuesday, an Iranian Foreign Ministry spokesman announced that Iran expects to restore full diplomatic relations with Egypt.

    "Relations with Egypt must now be restored, because this will help the Palestinian people and this is the wish of all Palestinian groups," Hamid Reza Asefi said.

    Meanwhile, the City Council of Tehran, the Iranian capital, on Tuesday changed the name of a street formerly commemorating the assassin of former Egyptian President Anwar Sadat, the official IRNA news agency reported.

    In line with a request of the Foreign Ministry, Tehran's KhaledIslambouli Street had been renamed to Intifada (Uprising) Street, the report said.

    Iran severed its diplomatic ties with Egypt in 1980, a year after Cairo struck the Camp David peace deal with Israel and gave asylum to Iran's exiled shah, Mohammad Reza Pahlavi. Enditem