During the ceremony, national anthems of the two countries were played, then Khatami and Aliyev reviewed the guard of honor.
Khatami and Aliyev are due to initiate their private discussions.
The high-ranking officials of the two countries will hold talks after the private discussion of the presidents.
The president is here at the official invitation of his Azeri counterpart Ilham Aliyev with whom he will hold talks on Tehran-Baku relations as well as cooperation at the regional and international levels.
The two presidents are expected to issue separate joint statements on political issues and the Caspian Sea at the end of their meeting to be held later in the day.
A number of agreements on Tehran-Baku cooperation are to be signed by the two presidents in the fields of security, culture, border trade, financial issues, transportation, energy and transition of gas to Nakhichevan.
In addition to addressing the Azeri parliament, President Khatami will also deliver a speech at the republic's Academy of Science.
He will later visit the ancient city of Ganjeh on Saturday to pay respect to great Iranian poet Nezami Ganjavi (Mowlana) whose tomb is located in his birthplace, Ganjeh and tour historical sites in the city.
... Payvand News - 8/5/04 ... --