Azerbaijan and Armenia, which are locked in conflict over the disputed territory of Nagorno-Karabakh, are discussing a deal under which Armenian forces would cede territory in exchange for the re-opening of a rail link between their two countries, the Azeri foreign minister said. \"We are discussing various ideas, including the option of opening the railway with Armenia in exchange for it pulling back from the seven districts of Azerbaijan it has occupied,\" Foreign Minister Elmar Mamedyarov told reporters. He added: \"The subject of our negotiations right now is how ready the sides are to make compromises.\" The railway-for-land swap was initially proposed by the European Union as a way of resolving the conflict over Nagorno-Karabakh, which has poisoned relations between the two former Soviet republics for more than a decade. Azerbaijan and Armenia fought a war over the mountainous enclave in the early 1990s, which left some 35,000 people dead and forced a million others on both sides to flee their homes. A ceasefire was signed in 1994, leaving Armenian forces in de facto control of the enclave. But the war has never been formally declared over. Peace talks to find a lasting solution have faltered, despite mediation by the international community. The remarks by the Azeri foreign minister partly lifted the veil on peace talks, which are being held in strict secrecy. Details of what the two sides are discussing are very rarely revealed to the public. Mamedyarov said the next round of talks would be in the French city of Strasbourg on May 12, when he is to meet Armenian counterpart Vardan Oskanian on the sidelines of a Council of Europe meeting. He said they would pick up the discussions started by Azerbaijan\'s President Ilham Aliyev and his Armenian counterpart Robert Kocharian, who met for talks this week while attending a conference in the Polish capital, Warsaw. The railway line under discussion has been closed ever since the conflict first flared up, some 15 years ago. It remained shut after the fighting ceased as part of an economic blockade imposed by Azerbaijan. It links Armenia to Azerbaijan and also to Russia, a key Armenian ally and trading partner. The re-opening of the route would ease the impact of the economic blockade on Armenia. The seven districts which figure in the proposed deal are not part of Nagorno-Karabakh. They were seized by Armenian forces during the war to provide a buffer zone against a possible attack by Azeri troops. (AFP)