President Donald Trump signalled Sudan would be removed from the US list of state sponsors of terrorism if it pays compensation of $335 million to American terror victims and their families.
The move would open the door for Sudan to receive much needed international loans and aid to revive its battered economy.
Sudan has been listed since 1993 when al-Qaeda leader Osama Bin Laden lived in the country as a guest of the government.
The compensation relates to the victims of the 1998 bombings of the US embassies in Kenya and Tanzania, attacks conducted by Bin Laden’s al-Qaida network while he was living in Sudan which killed more than 200 people.
Trump made the announcement on Twitter.