The Serbian government will sign a contract with China Railway International and CCCC on the overhaul project during the 16+1 summit in July, the ministry said in a statement on Tuesday.

"I am convinced that the works on the construction of the Belgrade-Budapest railway will be planned and performed well, as this is one of the most important projects for Serbia and should be an example for other projects with China in the region and in Europe," infrastructure minister Zorana Mihajlovic said in the statement.

China Railway International and CCCC are also the main contractors of the project for the overhaul of the Belgrade-Stara Pazova section of the railway, the ministry said.

Last week, Mihajlovic said she expects the China-funded overhaul of the Novi Sad-Subotica section of the railway line to start in 2019.

On July 6 and 7, Bulgaria's capital Sofia will host the seventh summit of heads of government of China and Central and Eastern European countries (CEEC), also known as the 16+1 mechanism.