"There are good chances for negotiations to be completed this year," Fischer said, adding that this would pave the way for Croatia's admission to the EU in 2012.
"Austria's position is clear, we support that approach. It is good for both Croatia and the region, and for the EU," the Austrian head of state is quoted by Croatian press agency Hina as saying.
Croatian President Josipović said he was grateful for Austria's support of his country's EU membership bid and said the government was preparing further reforms to speed up entry.
"I am glad to see that President Fischer considers realistic our plan to complete the negotiations in 2010 and to join the EU in 2012 after the ratification process," he stated.
"We know that we must carry out many reforms, notably in the judiciary and the public administration, and we are ready for those changes. The Croatian government is conducting and preparing further reforms in order to enable Croatia to enter the EU and also to guarantee to our citizens all the benefits of democracy and the rule of law."
Foreign and security chapter to be unblocked
Asked whether the foreign, security and defence policy chapter – one of the three negotiating chapters still to be opened – was discussed during his visit to Slovenia last week, Josipović said that the signature of an arbitration agreement for the Croatia-Slovenia border dispute had removed all obstacles and that the chapter could be unblocked at an EU-Croatia accession conference in April.
"I am sure that our friends in Slovenia will unblock that chapter because there is no reason for the blockade any more," the Croatian president said.
The two presidents gave assurances that relations between Austria and Croatia were "excellent", partly as a result of the two countries' long historical ties.
Fischer and Josipović also discussed bilateral economic cooperation and the situation in the region during the latter's visit to Vienna on Monday (15 March).
Josipović described Austria as an extremely important economic partner and the biggest investor in Croatia - which he underlined as being of key importance in times of crisis.
As for the situation in the region, both presidents expressed their desire to see Serbia on the road towards European integration. Fischer also thanked Croatia for supporting Austria's application for a seat on the UN Human Rights Committee.
Austrian backing for Croatian accession
Fischer's invitation to Josipović to visit Austria has been interpreted in political circles as a clear sign of Austria's support for Croatia's EU membership bid.
The cordial relations between the two countries were confirmed by the fact that Josipovic's visit came less than three months after his predecessor, Stjepan Mesić, was a guest of the Austrian president at the New Year's concert in Vienna.
Following his inauguration on 18 February, Josipović first travelled to Brussels for talks with EU and European Commission officials. Slovenia was his second foreign destination and he is scheduled to visit Hungary on Tuesday.