Speaking after the first meeting of the two prime ministers, Pahor said Slovenia is ready to endorse mediation put forward by the European Commission. He called mediation "a step in the right direction".
The government is expected to express backing for this proposal and ask parliament to do the same, Pahor added.
Mediation has been put forward by European Enlargement Commission Olli Rehn, who has proposed a three-member panel of experts led by Former Finnish President and veteran international diplomat Martti Ahtisaari.
However, Sanader told the press that the Slovenian-Croatian commission of legal experts tasked with preparing the groundwork for sending the dispute to an international court should complete its work.
He again reiterated Croatia's view that an international legal body was best suited for adjudicating on the border dispute between the two countries.
Moreover, he stressed that the border dispute was a bilateral issue not a European issue and that this should be respected in the attempts to solve it.
Pahor responded that if no progress is made towards a solution, Slovenia will stick by its reservations regarding Croatia's EU accession talks because of contentious documents filed by Croatia as part of the process.