Armenia and Azerbaijan have been in conflict over the breakaway enclave of Nagorno-Karabakh region for more than two decades.
A ceasefire was called in 1994 after more than 30,000 people were killed in the fighting but efforts to reach a permanent settlement have failed despite mediation led by France, Russia and the United States.
With the first European Games scheduled to take place in Baku next June, European and International Olympic Committee (IOC) officials travelled to Armenia last month to discuss their participation.
“It’s a very tense situation and we had an excellent meeting with our colleagues in Armenia,” Patrick Hickey, the president of the European Olympic Committee, told reporters on Wednesday.
“They have agreed to participate in the games next year and they will come to our general assembly in Baku in two weeks’ time.
“All the problems were solved.”
Hickey, in Bangkok for the Association of National Olympic Committees (ANOC) general assembly, also said Kosovo was likely to compete as an independent country.
The IOC last month granted provisional recognition of Kosovo, despite a protest from Serbia, and will vote next month on whether to recognise full membership of the IOC. Kosovo declared independence from Serbia in 2008.
“We will have an additional member by the time the games open next year and that is Kosovo,” Hickey said.
“If the IOC give them full recognition in the Monaco session in December, well then they will automatically be brought into the European Olympic family.
“Then that would be their first participation of a multi sports games.”
(Editing by Pritha Sarkar)