President Rouhani made the remarks Sunday in a meeting with Azerbaijan President Ilham Aliyev.
The meeting was held on the sidelines of the Organization of the Islamic Cooperation (OIC) Summit in Kazakhstan, according to IRNA.
He underscored the importance of finalizing railway project between Iran and Azerbaijan, and said the project will be advantageous not only for bilateral ties but for the region as well.
President Rouhani also urged both sides to reinforce cooperation in energy field and also their joint efforts in improving oil market.
He pointed terrorism as a regional and international problem, saying terrorism is about to collapse in the region.
President Rouhani went on to say that in order to uproot terrorism, we should put on the agenda intelligence, economic and cultural measures and also joint cooperation.
Meanwhile, Aliyev expressed Baku's readiness to promote relations with Tehran in economic, investment and trade fields.
He also referred to developing north-south corridor as an important issue for both sides.
President Aliyev extended Azerbaijan interest in maintaining cooperation with Iran in fighting terrorism.