(CNN)-- A source familiar with the negotiations told CNN on Saturday that Oman has prepared a proposal to manage navigation in the Strait of Hormuz through two lanes, northern and southern, under separate administrations.

The proposal, whose details have not been finalized, stipulates that both lanes remain open, with the southern lane, which passes through Omani territorial waters, allowing freedom of navigation as it was before the war.

As for ships crossing the northern lane, which passes through Iranian territorial waters, they will need prior approval from Iran, noting that no fees will be imposed under the agreement.

This comes after Iranian Foreign Minister Abbas Araghchi visited Muscat earlier on Saturday, where he held talks with his Omani counterpart Badr al-Busaidi on diplomatic efforts and the situation in the Strait of Hormuz, according to the official Oman News Agency.

The two officials discussed efforts to ensure safety and freedom of navigation in the strait 'in light of the circumstances and repercussions resulting from recent developments,' according to the agency.

The agency reported that the two sides agreed to hold further technical and political talks.

Iran's Foreign Ministry had earlier confirmed on Saturday that Araghchi had arrived in Oman for these talks following renewed clashes in the region.