Mrs Clinton is the first secretary of state to visit Burma since 1955 |
Mrs Clinton, the most senior American to visit the country in half a century, told the president she was "encouraged" by recent policy changes.
The US maintains tight sanctions on senior figures in Burma's hierarchy.
But a series of reforms this year has led to speculation that decades of isolation could be about to end.
However, US officials have stressed that there is unlikely to be any major announcements on sanctions during Mrs Clinton's trip.
Analysts say the US is more likely to consider symbolic gestures such as upgrading its mission in Burma to a full embassy.
Mrs Clinton's talks with Burma's leadership got under way on Thursday when she met Foreign Minister Wunna Maung Lwin before the talks with President Thein Sein. Read More....
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