Tehran and Manama had signed a new memorandum of understanding
Iran has reached a framework deal to export 1 billion cubic feet of natural gas per day to Bahrain and the two countries are now "one step closer" to a final agreement, according to local media reports.
Iran has said it would prefer to sell gas to nearby Gulf states but has been slow to reach any export deals. A contract with the United Arab Emirates has been held up for years. Local media quoted Oil Minister Gholamhossein Nozari as saying Tehran and Manama had signed a new memorandum of understanding during his visit to Bahrain this week.
"We got one step closer to signing the agreement," Nozari was quoted as saying. The report said the two sides reached a "framework" for a deal but gave few details.
Nozari said the gas would come from the country's South Pars field. Iran and Bahrain signed another MOU in 2007.
Iran has been slow to develop gas exports partly because of US sanctions on Tehran that have hindered access to technology for liquefied natural gas plants. But political bickering over the price for selling gas has also held up contracts.
A deal with Crescent Petroleum of the United Arab Emirates, signed in 2001, has yet to be finalised because of a row over prices.