Chinese President Xi Jinping on Sunday held bilateral talks with Nepalese Prime Minister KP Sharma Oli.
A formal agreement over the issues of connectivity and improvement of infrastructures is expected to be sealed between the two heads of the states.
On Saturday, Jinping announced that it would carry out a feasibility study on trans-border railways linking Nepal with the Sino land during the state banquet held in his honour by Nepali President Bidhya Devi Bhandari.
Xi also promised the construction of Rasuwagadhi-Chhare-Kathmandu tunnel way and upgrade of Araniko Highway.
Jinping arrived at Nepali capital Kathmandu from Chennai, India, late on Saturday afternoon and was received by the President of Nepal along with other Ministers and high ranking officials.
The visit of the Chinese head of state comes after an interval of nearly 23 years.
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With more engagements planned for Sunday along with the signing of some agreements, the Chinese President is set to fly back to China later in the afternoon.
Xi had emarked on a visit to Nepal after concluding his two-day informal summit with PM Narendra Modi in Tamil Nadu's Mahabalipuram.