Iraqi Republic Railways Company chief, Salib al-Hussaini, said a summit will be held between the countries to further discuss the matter, the Arabic-language Al-Sumeria news website reported.
The comments made on the sidelines of the joint Syrian-Iraqi committee held in Damascus came a week after Iranian First Vice President Es’haq Jahangiri spoke of an initiative to link the Persian Gulf to the Mediterranean.
"We will connect the Persian Gulf from Iraq to Syria and the Mediterranean via railway and road," said Jahangiri, making reference to the construction of a railway linking the Iranian Shalamcheh border region to the Iraqi city of Basra.
Speaking last December, the Director General of the Railway and Technical Structures Department at the Islamic Republic of Iran Railways (RAI) Mohammad Mousavi said Iran was planning to build a movable railway bridge over the Arvand River as part of the Shalamcheh-Basra project.
Mousavi said the project would effectively link the Iranian cities of Khorramshahr and Abadan along with the Imam Khomeini Port to the Iraqi city.
The railway project was agreed to last month when Iran and Iraq signed five memoranda of understanding for the expansion of bilateral cooperation in various economic and healthcare sectors.
Observers have described the new agreements as a sign of Baghdad's serious intention of not being “party to the system of sanctions against Iran” as Prime Minister Abdul-Mahdi said earlier in February.
Iraq heavily depends on Iran for everything from food to machinery, electricity, natural gas, fruits and vegetables.
Last year, Iran exported $8.7 billion worth of commodities to Iraq, overtaking Turkey with $7.3 billion of exports.
President Hassan Rouhani said last week that Iran and Iraq had plans to expand bilateral trade volume to $20 billion in the future.
Iran and Syria also signed a series of "historic" agreements earlier this year, including a “long-term strategic economic cooperation” deal described as a sign of changing realities in the Middle East.
Syrian Prime Minister Imad Khamis said the “historic” agreements covered cooperation in fields of industry, trade and agriculture. He called the agreement “a message to the world on the reality of Syrian-Iranian cooperation.”
Iraq and Syria have been expanding political and economic ties with Iran as they seek assistance in the postwar reconstruction of their countries which had large swathes of their territories overrun by foreign-backed terrorist outfits in the past years.
Iran has been offering military advisory support to Iraq and Syria at the request of their governments, enabling their forces to speed up gains on various fronts against the terrorist groups.