Qatar has restored diplomatic relations with Iran, ignoring the requests of its Arab neighbours.

Saudi Arabia has led the United Arab Emirates, Bahrain and Egypt in demanding that Qatar cuts ties with Tehran in return for lifting the boycott they have currently placed on the nation.

The four countries suspended diplomatic relations and all travel to Qatar after accusing Doha of sponsoring terrorism and cosying up to the Iranian regime.

During Qatar's dispute with its neighbours, Iran allowed Qatar Airways, the national carrier, to use its airspace and also sent supplies to help the country’s 2.7 million people.

In a short statement, the Qatar foreign ministry said its ambassador would return to Tehran to exercise his diplomatic duties.

"The state of Qatar expressed its aspirations to strengthen bilateral relations with the Islamic Republic of Iran in all fields," the Qatari Foreign Ministry said in a statement.

Kristian Coates Ulrichsen, a research fellow at the James A Baker III Institute for Public Policy at Rice Universit, said the moved showed Qatar was prepared to move “in a different direction".

"It could very well be calculated toward reinforcing the point that Qatar will not bow to this regional pressure placed upon it," she told the Associated Press.

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Saudi Arabia and its allies have accused Iran of interfering in Arab states such as Iraq and Yemen, claiming Tehran’s increasing influence has destabilised the region.