Ethiopia and Egypt agreed to hold further consultations on Addis Ababa's new dam on the Nile, in an effort to defuse tensions between the two countries, dpa cited their foreign ministers as saying Tuesday. The announcement came following a meeting between Ethiopia's Tedros Adhanom and his Egyptian counterpart Kamel Amr, after Cairo raised concerns the project would reduce its water supply. Some politicians in Egypt called for an outright war with Ethiopia over the dam, while President Mohamed Morsi warned last week that "all options are open." Morsi also said he did not want a conflict and was seeking ways to resolve the dispute peacefully. Adhanom said in a statement that the dam "being built in a way that addresses Egypt's water security concerns." Last month, Ethiopia began to divert the Blue Nile - a tributary of the Nile, sparking the row with Egypt, which relies on the river for its water supplies. Ethiopia plans for the dam to create some 6,000 megawatts of power and says there should be no major disruptions to water flows.