According to the report, an official team will leave for Thimphu on Friday to set up the visit which is likely to take place after the ongoing Parliament session.
Modi will hold talks on key bilateral and regional issues with the leadership of the Himalayan nation, top government sources said. The visit reflects the importance India attaches to its ties with Bhutan whose Prime Minister Tshering Tobgay was among the leaders from the neighbouring countries to attend Modi's swearing-in on May 26.
After the swearing-in, Modi had held a short duration bilateral meeting with the Bhutanese leader. Modi is also likely to travel to Brazil to participate in the BRICS (Brazil, Russia, India, China and South Africa) summit in mid July.
Modi had made it particular to begin the foreign tour from neighbourhood. The report said that the choice was largely between Bhutan, Nepal and Bangladesh. The BJP was keen to choose Nepal, where there is a Hindu majority and also, no PM from India has visited Nepal for nearly 13 years. However, as Nepal will be hosting this year's SAARC Summit, which will be attended by Modi, it was decided that Bhutan will be the first destination.
Bhutan is one of the friendliest neighbours of India. The relation with Bhutan is important for India at this juncture as China too, is trying to open a mission with the Himalayan country.