- Phone call between leaders of the countries suggested a breakthrough
- Soon after the call, Saudi Arabia accused Qatar of "distorting facts"
- Saudi Arabia, UAE and Egypt had cut diplomatic ties with Qatar in June
Saudi Arabia's Crown Prince Mohammed bin Salman spoke by the telephone with Qatar's Emir Sheikh Tamim bin Hamad al-Thani on Friday when they discussed the Gulf dispute, state media from both countries reported earlier.
Saudi Arabia, the UAE, Egypt and Bahrain cut diplomatic and trade links with Qatar on June 5, suspending air and shipping routes with the world's biggest exporter of liquefied natural gas, which is home to the region's biggest US military base.
The nations say Doha supports regional foe Iran and Islamists, charges Qatar's leaders deny. Kuwait has been trying to mediate the dispute.
"During the call, the Emir of Qatar expressed his desire to sit at the dialogue table and discuss the demands of the four countries to ensure the interests of all," Saudi state news agency SPA reported.
"The details will be announced later after the Kingdom of Saudi Arabia concludes an understanding with the United Arab Emirates, the Kingdom of Bahrain and the Arab Republic of Egypt," SPA said.
The phone call was the first publicly reported contact between the two leaders since the start of the crisis.
Qatar's state news agency QNA said the phone call was based on coordination of US President Donald Trump who had earlier talked with Sheikh Tamim.
Trump on Thursday said he would be willing to step in and mediate the worst dispute in decades among the US-allied Arab states and Qatar, and said he thinks a deal could come quickly.
Sheikh Tamim welcomed the proposal of Prince Mohammed during the call "to assign two envoys to resolve controversial issues in a way that does not affect the sovereignty of the states," QNA said.
Saudi Arabia later issued a second statement citing an unnamed official at the ministry of the foreign affairs denying the QNA report.
"What was published on the Qatar News Agency is a continuation of the distortion of the Qatari authority of the facts," SPA reported citing the Saudi official.
"The Kingdom of Saudi Arabia announces the suspension of any dialogue or communication with the authority in Qatar until a clear statement is issued clarifying its position in public."
(Reporting by Rania El Gamal; additional reporting by Mohamed El Sherif and Mostafa Hashem in Cairo; Editing by Sandra Maler and Lisa Shumaker)
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)