The Malaysian and Thai governments have agreed to fence up its shared border to combat smuggling, said Thai Deputy Prime Minister Prawit Wongsuwon.

This will be part of a pact to be signed by the neighbouring nations, the Bangkok Post reported.

Prawit spoke to reporters in Bangkok after returning from a meeting with Home Minister Ahmad Zahid Hamidi in Putrajaya, it reported.

In 2013, Zahid said the government intends to build a 141km-long electric fence along the border in Kelantan.

He said the fence would be along the 121km of river boundary and 20km of land boundary from Pengkalan Kubor in Tumpat to Jeli, but details of the "high cost" project was yet to be finalised.

The project is estimated to take three years to complete, he reportedly said.

The Kelantan government last week said that a fence or wall would be built on the border, from Tumpat to Jeli, with the federal government.

This is to beef up security along the porous border, which has allowed the smuggling of contraband including firearms and drugs.

The government said Kelantan is the top destination for ketamine distribution and abuse due to proximity to Thailand.