Canadian Prime Minister Justin Trudeau says his country is getting ready to resume diplomatic relations with Iran following a four-year break in ties.

On Monday, Trudeau said that the subject will “certainly” be discussed at an upcoming cabinet meeting.

Referring to the implementation of the nuclear agreement between Iran and the P5+1 group of countries, Trudeau said that Tehran has made "significant movement towards respecting international expectations."

"That is something positive and I expect there will be (diplomatic) links now between Canada and Iran," he noted.

Trudeau, who assumed office in November last year, made the remarks a day after Canadian Foreign Affairs Minister Stephane Dion told reporters that Ottawa is yet to decide on lifting sanctions on Iran and join the European Union and the United States in doing business with Tehran.

The former Canadian government broke ties with Iran in 2012.

European Union foreign policy chief Federica Mogherini (L) and Iranian Foreign Minister Mohammad Javad Zarif attend a joint press conference in Vienna on January 16, 2016. (AFP)

On Saturday, Iranian Foreign Minister Mohammad Javad Zarif and EU foreign policy chief Federica Mogherini announced that sanctions imposed on Tehran have been lifted as the nuclear agreement came into force after the International Atomic Energy Agency (IAEA) confirmed Iran had kept its commitments to the historic deal.

Iran and the P5+1 countries -- the United States, Britain, Russia, China, France and Germany -- finalized the Joint Comprehensive Plan of Action in Vienna on July 14, 2015.