"I believe the Islamic Republic of Iran and Azerbaijan Republic have lots of useful potentials for expansion of bilateral ties, recognition of which can lead to proximity of the two sides and turn the two countries into strategic partners," Pakayeen said in an interview with Azerbaijan's Ollaylar daily on Friday.
"The Islamic Republic of Iran considers Azerbaijan Republic an important country in the region which is a gate towards the Caucasus region countries, while in commerce, goods and energy transit, too, keeping in mind having shared land and sea boarders, we are interested in strengthening ties with Baku," he stressed.
Pakayeen stated that satisfactory relations between Tehran and Baku can lead to regional stability and balance and play an important role in preservation of peace and stability inside both countries.
Iran has recently enhanced efforts to boost political, economic and cultural ties and cooperation with the regional and neighboring countries, specially the Central Asian states.
In October, President Mahmoud Ahmadinejad traveled to Baku to attend the 12th Summit of the Economic Cooperation Organization (ECO). The summit was held at the Heydar Aliyev Center in Baku.
The Iranian and Azeri presidents met on the sidelines of ECO Summit.
Speaking to reporters at the end of his visit to Baku, President Ahmadinejad called the ECO summit in Azerbaijan as "very good and constructive".
He also expressed the hope that ECO would witness very positive outcomes during Azerbaijan's presidency.