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Eritrea has been accused of destabilizing peace and security in the region.
Djibouti and Ethiopia on Saturday accused Eritrea of undermining regional stability.
"Eritrea is destabilizing peace and security in the countries of the region, including Djibouti," Djiboutian President Ismail Omar Guelleh told a joint press conference with visiting Ethiopian Prime Minister Hailemariam Desalegn.
"We agreed that the sanction will remain in effect on Eritrea," he said.
For his part, Desalegn, who arrived in Djibouti earlier Saturday on a visit for the Horn of African nation, said the two countries will stand together to defend their borders.
"Ethiopia is ready to defend and safeguard Ethio-Djibouti common borders," he said. "Our security officials will discuss on this issue and map out common stand."
Tension has been high between Eritrea and both Djibouti and Ethiopia over their border conflicts.
Djibouti and Eritrea have engaged in two border conflicts in recent years.
Ethiopia and Eritrea, meanwhile, fought a two-year war over a border triangle in 1998.
"The International community is losing hope that there is no behavioral change on part of Eritrea, we ask the international community to take proportional measures against Eritrea," Desalegn said.
Asked by The Anadolu Agency where the truth lies with accusations between the two countries, the Ethiopian Premier said that "this is documented by the UN Security Council Team of Investigations, which has proved the destructive role of the Eritrean government and imposed sanctions on Eritrea."
The two leaders have reiterated cooperation to resolve regional conflicts, particularly in Somalia and South Sudan.
"We work closely to prevent regional challenges as we are in a volatile region in which ensuring peace and security is a challenge," Desalegn said.
"We have achieved promising peace and stability to our Somali brothers and sisters under the Inter-Governmental Authority on Development (IGAD) as part of our efforts to maintain peace and stability in the region," he added.
"The complicated situation in South Sudan demands much of our time and resource. I must thank the government of Djibouti for the very important role to bring about peace and stability for Somalia and South Sudan," he said.
"We continue to support Somalia and South Sudan in their efforts to restore peace and stability. We do not lose hope whatever happens in our region."
The Djiboutian president, for his part, said that his country would continue its role in the fight against the Somali Al-Shabaab militant group.
"Djibouti will continue its involvement in Somalia and continue the fight against Al-Shabaab in collaboration with Ethiopia. Djibouti also provides support to [African peacekeeping mission] AMISOM," he said.
"We hope that the warring parties in South Sudan will reach agreement," he added.