Rouhani went into the meeting with Sultan Qaboos, who has acted as an intermediary between Western countries and the Islamic republic, soon after he arrived in Muscat accompanied by a delegation of Iranian leaders.
The two leaders discussed "bilateral cooperation" and "building good relations" between their countries, Oman's official ONA news agency reported.
The sultanate is reported to have hosted secret talks between Iran and the United States ahead of the signing in Geneva last November of an accord between world powers and Iran on its nuclear programme.
Before departing Tehran for Muscat today, Rouhani hailed the "good relations" that exist between Tehran and Muscat.
"During this trip, we want to implement contracts (signed) in the field of trade and economy, especially those linked to oil and gas," as well as in finance, banking, and culture, he told reporters at the airport, as cited by IRNA, Iran's official news agency.
Tehran's ambassador in Muscat, Ali Akbar Sibeveih, said ahead of the visit that Oman and Iran are seeking to expand trade, which reached USD 1 billion last year, as well as bilateral investments which they expect will top USD 10 billion by the end of this year.