Ferrovie, Italy's state railway company, is set to sign deal worth €1.2 billion ($1.36 billion) with the Islamic Republic of Iran Railways (IRIR), a report said.

The memorandum of understanding (MoU) which involves the constructing Qom–Arak high speed railway line in Iran is to be signed in Tehran on July 11, Iran Daily reported, citing Irna.

The contract includes building the infrastructure as well as supplying high-speed trains for Iran. The Italian company will also be responsible for holding technical courses for IRIR personnel.