The Iranian foreign minister has proposed setting up the 'Asian Union' to strengthen economic cooperation among Asian counties.

"We are trying to find a united stance on different economic issues to address the challenges presented by the economic crisis and offer appropriate management solution for the world," Manouchehr Mottaki said at the 8th Asia Cooperation Dialogue (ACD) Ministerial Meeting in Colombo, Sri Lanka.

"If we are united, we will have closer cooperation in the fields of trade, tourism and transportation," he said, expressing hope for the forging of better ties among Asian countries.

"We believe that a collective effort is required to ensure interests are generated and losses are reduced in regional equations," the top Iranian diplomat said.

The ACD Ministerial Meeting is being held in Colombo under the theme of 'Spirit of Asia: Global Economic Recovery and Development Prospects' with the participation of its 31 member countries.

Iran, which became a member of ACD in 2004, will host the gathering next year.