China would carry out a feasibility study on trans-border railways linking Nepal with the Sino land, Chinese President Xi Jinping announced on Saturday.
The Chinese President made the announcement during the state banquet held in his honour by Nepali President Bidhya Devi Bhandari.
The state reception was addressed by Presidents of both nations.
Xi also promised the construction of Rasuwagadhi-Chhare-Kathmandu tunnel way and upgrade of Arko Highway.
A formal agreement over the issues of connectivity and improvement of infrastructures is expected to be sealed on Sunday morning when President Xi sits down with Nepali Prime Minister KP Sharma Oli.
Addressing the banquet, the Nepal President also applauded the Belt and Road Initiative (BRI) of Xi.
The visit of the Chinese head of state comes after an interval of nearly 23 years and has been given utmost importance in Nepali political sphere.
The Chinese President is on a two-day stop-over state visit to Nepal on his way back from India after holding an informal summit with Indian Prime Minister Narendra Modi.
Xi arrived at Nepali capital Kathmandu from Chennai, India, late Saturday afternoon and was received by the President of Nepal along with other Ministers and high ranking officials.
Xi held talks with Nepal's former Prime Minister and Chairman of Nepali Congress, the country's biggest Opposition party in Parliament, Sher Bahadur Deuba.
"It was great meeting with President Xi Jinping of China in #Kathmandu this evening. We discussed ways to strengthen the ages-old bilateral ties between #Nepal and #China," Deuba tweeted.
With more engagements planned for Sunday along with the signing of some agreements, the Chinese President is set to fly back to China later in the afternoon.
( With inputs from ANI )