Beijing - China and Russia signed a final agreement on disputed border areas on Monday, with Russia reportedly conceding 174 square kilometres, including two small islands in a border river.

Chinese Foreign Minister Yang Jiechi and his Russian counterpart, Sergei Lavrov, signed the agreement after talks in Beijing.

"We just signed a protocol on the eastern part of the Sina-Russian border," Yang told reporters at a joint press conference.

"It means that 4,300 kilometres of border between us has been demarcated," he said.

"From a legal point of view we have created the preconditions for the border to become a link of stability, openness, mutual benefit, friendship and cooperation," Lavrov said.

Chinese state media said Russia had conceded Yinlong (Tarabarov) island and half of Heixiazi (Bolshoi Ussuriysky) island, which are at the confluence of the Heilongjiang and the Wusulijiang rivers on the Sino-Russian border.

Yang said the two sides had reached a wide-ranging consensus and after "positive and fruitful" talks on diplomatic, trade and international issues.

"China and Russia have discussed their borders for over 40 years," Yang said.

"It's no simple matter that we have now demarcated the border in its entirety," he said.

"As we preserve domestic stability in our respective societies, we have now created a very good external environment for social and economic development, which is of huge benefit to us both," Yang said.

Lavrov said China and Russia were also discussing cooperation on such issues as labour migration, including the setting up of "insurmountable barriers" for illegal migrants.

He later met President Hu Jintao and Premier Wen Jiabao. (dpa)