"We've finally succeeded in making peace," said Trump.
"Armenia and Azerbaijan are committing to stop all fighting forever, open up commerce, travel and diplomatic relations and respect each other's sovereignty and territorial integrity."
The US is also signing a bilateral agreement with both countries to expand cooperation and energy, trade and technology, including AI.
"We're also lifting restrictions on defense cooperation between Azerbaijan and the United States," Trump said. "That's a big deal."
What does the deal include?
The agreement includes exclusive U.S. development rights to a strategic transit corridor through the South Caucasus, dubbed the "Trump Route for International Peace and Prosperity."
U.S. officials said the agreement was hammered out during repeated visits to the region and would provide a basis for working toward a full normalization between the countries.
Neither the joint declaration to be signed nor the separate bilateral agreements with the U.S. were released.
It was not immediately clear how the deal being signed on Friday would address thorny issues such as the demarcation of shared borders and Baku's demand for a change in Yerevan's constitution, which includes a reference to a 1989 call for the reunification of Armenia and Nagorno-Karabakh, then an autonomous region within Soviet Azerbaijan.
Officials briefing reporters skirted over the Nagorno-Karabakh issue.
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