Burma and Bangladesh say they will compromise to resolve a long-standing dispute over a sea border in the Bay of Bengal.

The two sides announced the decision Saturday, following talks in the Bangladeshi port city of Chittagong.

Bangladeshi sources said agreement was reached on a demarcation combining the principles of both equity and equal distance.

The two sides say the next round of talks on the issue will take place in Burma, probably in April.

Burma says the disputed area is part of its exclusive economic zone, and has built oil and gas exploration platforms in it.  Bangladesh says the Burmese are claiming too large of an area.

The two sides had a tense military standoff over the issue last November after Burma hired a South Korean company to explore for oil and gas.