Shanghai and Taipei will hold their annual city forum on July 22 by video conference, which was agreed by the two cities after consultation, a mainland spokeswoman said on Friday.

The forum has been held by Shanghai and Taipei in rotation since 2010 to improve exchanges. The forum last year was held in Shanghai, and mayors of the two cities both attended.

The two cities have conducted exchanges in urban construction and governance, and reached consensus several times over the years, Zhu Fenglian, a spokesperson for the State Council Taiwan Affairs Office, said in a statement.

"The cooperation between the two cities has improved the livelihood and mutual understanding of residents on both sides," she said.

"The two cities are advancing exchanges and cooperation on the right track, which will help them share the benefits of mutually beneficial cooperation," she added.