"During this telephone conversation, the [foreign] ministers agreed to normalize the diplomatic relations between the Netherlands and Turkey," the Dutch Foreign Ministry said in a statement.
The ministries further "agreed to reinstate ambassadors in Ankara and The Hague shortly."
Relations between the Netherlands and Turkey deteriorated last year after Dutch authorities had banned a Turkish minister from attending a demonstration prior to a referendum that gave Turkish President Recep Tayyip Erdogan more power.
On the same day, Turkish Family and Social Affairs Minister Fatma Betul Sayan Kaya decided to travel to the Netherlands, but was denied entry to the Turkish consulate in Rotterdam.
Ankara reacted furiously, promising reciprocal actions and sanctions against the Netherlands. On Monday, Ankara sent the Netherlands two diplomatic notes, criticizing Cavusoglu's treatment, while the Dutch authorities demanded an apology for having been compared to Nazis.