TEHERAN (REUTERS, AFP) - German Foreign Minister Frank-Walter Steinmeier said on Wednesday (Feb 3) that he had told Iranian President Hassan Rouhani he was welcome to visit Germany the next time he comes to Europe.

Speaking after meeting Mr Rouhani in Teheran, Mr Steinmeier said he had urged him "to keep Germany in mind as a destination on his next trip to Europe".

Several European governments and multinational firms have rushed to establish a position in Iran as it reopens for business after the lifting of sanctions that had isolated and hobbled its economy, in exchange for curbs on its disputed nuclear programme.

Mr Rouhani visited Rome and Paris last month, where he oversaw a joint venture deal between French carmaker PSA Peugeot Citroen and Iran Khodro. Carmaking is the second largest sector of the Iranian economy after oil.

On Wednesday, he told Mr Steinmeier Iran and Germany could "cooperate on resolving regional and international issues, especially on fighting terrorism", the official IRNA news agency reported.

"The flow of arms and financial resources to terrorism must be stopped," Rouhani said.

The German foreign minister will next visit Saudi Arabia, which severed all ties with Iran last month after demonstrators stormed its embassy in Teheran and consulate in second city Mashhad following Riyadh's execution of a prominent Saudi Shi'ite cleric.