According to the source the Lebanese embassy in the Syrian capital is to be operational before the end of the year.

The source did not specify if the compound would also be the residence of Lebanon’s ambassador to Syria, who is yet to be named.

The Lebanese daily Al Safir said that Damascus would set up its Beirut embassy in the Bir Hassan district, an area on the outskirts of Beirut’s southern suburbs, a hotbed of Hezbollah. The building would also host the residence of the Syrian ambassador, who is also yet to be named.

The area of Bir Hassan hosted the headquarters of the Syrian military intelligence in Beirut for over 30 years. Syria withdrew from Lebanon under local and international pressure after the 2005 assassination of former premier Rafik al-Hariri. Damascus was widely blamed by Hariri’s allies for his killing, a charge Syria has denied.

On Wednesday, Syria and Lebanon announced establishment of diplomatic ties for the first time since they became independent 60 years ago.

Iran yesterday welcomed the decision.

“The move contributes to the strengthening of the mutual and historical relations between the two nations that are (Iran’s) friends and brothers,” foreign ministry spokesman Hossein Ghashghavi was quoted as saying by the Isna news agency.

Iran is a staunch supporter of Hezbollah although it denies Western and Israeli charges of providing military backing to the militant group.