Tehran City Council has renamed a street commemorating the assassin of former Egyptian President Anwar Sadat in a move expected to pave the way for the restoration of diplomatic ties with Cairo.
The official IRNA news agency said Khaled Islambouli street had been changed to Intifada (Uprising) street at the behest of Iran's Foreign Ministry.
The street's new name appears to refer to the Palestinian uprising against Israeli occupation.
Cairo has been demanding Iran rename the street, which commemorates Islamic radical Islambouli who shot Sadat in 1981, before contemplating a restoration of relations.
Iran broke ties with Egypt shortly after the 1979 Islamic revolution for striking the Camp David peace deal with Israel and hosting Iran's exiled shah.
But the two countries have expressed a strong desire in recent weeks to patch up their differences. Iran's President Mohammad Khatami and Egypt's Hosni Mubarak met on the sidelines of a conference in Geneva last month - the first such meeting for over two decades.