BANGKOK - Malaysian Prime Minister Dr Mahathir Mohamad will pay a three-day official visit to neighbouring Thailand next month, a senior minister said Tuesday.

Mahathir, who has served 20 years in office and is one of Asia's elder statesmen, will arrive in Bangkok July 5 as the guest of Thai Prime Minister Thaksin Shinawatra, deputy prime minister Korn Dabbaransi said.

"They will discuss economics, trade cooperation, and joint investment," Korn told reporters, adding Mahathir would also be granted an audience with Thai King Bhumibol Adulyadej.

"As Thai-Malaysian relations are considered very close, this visit is quite significant," Korn said.

It is Mahathir's first trip to Thailand since Thaksin was elected in January 2001.

Mahathir is expected to visit a rural economic initiative and travel to Chiang Mai city in the mountainous north.