The CPC official said China is willing to cooperate with Iran to seize the opportunities to consolidate and develop bilateral relations in various areas.
Li put forward a four-point proposal to develop bilateral relations, including maintaining high-level contacts and deepening political mutual trust, boosting pragmatic cooperation, strengthening cultural exchanges, and maintaining coordination in international affairs.
Li and Ahmadinejad exchanged their views on international and regional issues of common concern.
Li reiterated China's stance to solve the Iranian nuclear issue through negotiations. "China is willing to continue playing a constructive role in this regard," he said.
Ahmadinejad asked Li to convey his greetings to Chinese President Hu Jintao and said he agreed with Li's proposal on further boosting bilateral relations.
The Iranian president pointed out that Iran and China share similar views on the current world situation and global issues, and they face similar challenges and opportunities.
"Development of friendly relations between the two countries is in the interest of the two peoples and regional peace," he said. "Iran will continue implementing friendly policies toward China, boost pragmatic cooperation in different fields and realize the common development of the two sides."
While expressing appreciation for China's long-standing efforts to help solve the Iranian nuclear issue, he said Iran is committed to solving the issue through negotiations.
Earlier in the day, Li also met with Iran's Vice President Mohammad Reza Mir-Tajeddini.
Li spoke highly of the relations between China and Iran in recent years, and said the steady development of bilateral ties has benefited the two peoples.
Mir-Tajeddini said Iran is willing to work closely with China to explore new areas in bilateral cooperation, which has huge potential, and deepen exchanges in fields including culture and journalism.
After their talks, Li and Mir-Tajeddini attended a signing ceremony of cooperation agreements in culture, education and journalism, and they also jointly unveiled the China Central Television's (CCTV) Tehran Bureau.
On Tuesday afternoon Li visited the Confucius Institute at Tehran University, where he encouraged the Iranian students to constantly improve their Chinese level and become professional translators to make contributions to bilateral relations.
The Confucius Institute, the first in Iran, is co-founded by Yunnan University of China and Tehran University. It was officially opened in Tehran on Jan. 1, 2009.
He told the Iranian students in the institute that he was moved by their strong interest in learning Chinese. While presenting some Chinese culture-experiencing equipment and books to the institute, Li said he hopes the institute can use these books and equipment to promote its Chinese-teaching capacities.