Foreign Minister Mustafa Othman Ismail said the two countries also agreed to lift Sudan from a U.S. list of states supporting terrorism and to step up diplomatic representation to the level of ambassador.

Speaking after a meeting in Khartoum with U.S. Deputy Secretary of State Robert Zoellick, Ismail said the process of lifting U.S. sanctions started with the end of a ban on Boeing spare parts for Sudan Airways aircrafts and equipment for the railway network and carriages.

He said the lifting of sanctions will take place gradually, noting that the countries will exchange ambassadors in the next few months.

Ismail pointed out that U.S. diplomats, officials and Congressmen can now get entry visas from all Sudanese embassies, whereas before only embassies in London, Cairo and Washington were entitled to give them entry permission.

The foreign minister said the U.S. plans to build its biggest embassy in Africa in Khartoum and that it has purchased a big lot of land for that purpose.