Modi in his meeting with Yadav discussed how to further strengthen ties between the two countries.
The meeting will be followed by a vegetarian lunch, which will include some Gujarati dishes. The lunch was vegetarian since this is a Monday that falls in the traditional Sravan month.
Modi is on a two-day visit to Nepal that ends on Monday.
Modi's meeting with the president was preceded by a visit to the Pashupatinath temple where he prayed, announced Rs.25 crore for a dharamshala and offered 2,500 kg of sandalwood.