Landlocked Ethiopia sparked a diplomatic row with Mogadishu in January by signing a deal with Somaliland to lease 20 kilometers of its coastline, and eventually recognizing the region as an independent state.
Somalia called the deal illegal as it considers Somaliland as part of its territory even though it has had effective autonomy since 1991.
To defuse the acrimony, Kenya, in consultation with Djibouti and eastern African bloc Intergovernmental Authority on Development (IGAD), has proposed a maritime treaty to govern how landlocked states in the region can access ports on commercial terms, a senior Kenyan official said on Thursday.
Before discussing port access bilaterally, Ethiopia must annul its agreement with Somaliland, Somalia's state minister for foreign affairs Ali Omar told Reuters news.
"Somalia will never accept (a) naval base," Omar said. "Somalia is ready for commercial access in accordance with the international law of the sea."
He added that Somalia was willing to discuss proposals so long as they meet the country's interests which are to "safeguard (our) sovereignty, political independence and unity."
A spokesperson for Ethiopia's foreign ministry declined to comment.