A delegation from Egyptian government arrived in Somaliland this week and met with Somaliland president Musa Bihi Abdi and other senior government officials.
The delegation including diplomats and military officials have proposed setting up a military base in north west regions of Somaliland.
No officials from either countries have commented on this issue.
During a meeting, a plan was presented for Egypt to assist Somaliland in the development of education sector.
The two sides have agreed on exchange of high level representation offices in Hargeisa and Cairo.
The Egyptian delegation left from Somaliland and returned home on Wednesday after wrapping up the visit.
The Ethiopian government expressed its concern over the issue as Egypt locked horns with Ethiopia over Nile river dispute.
It is believed that a new alliance appears to be Egypt’s revenge on Somalia after it sided with Ethiopia.
Most Arab League states have sides with Egypt in the dispute over the Nile with Ethiopia but Somalia’s decision was quite different as it sides with Ethiopia.
Ethiopian confirmed that it has proceeded with filling the Grand Renaissance Dam before reaching an agreement with Egypt.
Egypt’s FM has previously warned that filling and operating the dam without an agreement will heighten tensions as it will provoke crisis and destabilize the troubled region.