The leaders of Ethiopia and Egypt say they hope ongoing talks over sharing the waters of the Nile River will lead to a final agreement.

Egyptian President Abdel-Fattah el-Sissi told reporters in the Ethiopian capital of Addis Ababa, where he is on an official visit, that Ethiopia and Egypt are "on the right path to cooperation."

Ethiopian Prime Minister Hailemariam Desalegn said he will hold direct talks with el-Sissi at least once a year either in Addis Ababa or Cairo.

Egypt, Ethiopia and Sudan on Monday signed an initial agreement on sharing Nile waters as Ethiopia continues to build a contentious new dam.

Cairo previously had voiced fears that Ethiopia's $4.2 billion hydro-electric project would diminish its share of the Nile waters.