Islamabad: Iranian President Mahmoud Ahmadinejad arrived in Islamabad on Monday to discuss a $7.6 billion gas pipeline project.

The cross-border pipeline between Pakistan and India is expected to be signed soon after transit fees and other terms are finalised.

"We are hoping the project...will be finalised soon," Iranian Foreign Ministry spokesman Mohammad Ali Hosseini said in Tehran.

Ahmadinejad, whose country has the world's second largest reserves of gas, went straight to a meeting with Pakistani President Pervez Musharraf.

He is also due to meet Prime Minister Yousaf Raza Gilani. He is flying to Sri Lanka later on Monday and is expected to arrive in India on Tuesday.