It said the agreement was reached by the Russian and Latvian foreign ministers in a telephone conversation and that the treaty will be signed by the countries' prime ministers in Moscow.
EU member Latvia has decided to recognize the post-Soviet borders with Russia, backtracking on its earlier territorial claims on a district in the neighboring Russian region of Pskov, which was part of the Baltic state before World War II.
The border treaty, drafted back in 1997, has remained unsigned and un-ratified after Latvia added a unilateral declaration claiming the Russian territory and demanding that Russia acknowledge Soviet aggression in the Baltic state during World War II.
Russia has rejected both demands.
In January, Latvian authorities said they would not be adding anything to the treaty.
