President Donald Trump invited reporters into the Oval office to hear a call with Israeli Prime Minister Benjamin Netanyahu and Sudanese Prime Minister Abdalla Hamdok on Friday.
Mr Hamdok thanked Mr Trump for removing Sudan from the state sponsor of terrorism list. Mr Netanyahu praised a recent deal between Sudan and Israel.
A statement from the three countries noted that Mr Netanyahu, Mr Hamdok and Mr Trump "agreed to the normalisation of relations between Sudan and Israel and to end the state of belligerence between their nations".
Delegations will negotiate co-operation agreements in agriculture technology, aviation, migration issues and other areas within "the coming weeks".
"We are expanding their circle of peace so rapidly with your leadership," said Mr Netanyahu.
The development came minutes after the White House officially informed Congress of his intent to remove Sudan from its state sponsor of terrorism list.
“This follows on Sudan’s recent agreement to resolve certain claims of United States victims of terror and their families,” White House press secretary Kayleigh McEnany said.
“Yesterday, in fulfilment of that agreement, the transitional government of Sudan transferred $445 million into an escrow account for these victims and their families.”
Mr Trump announced the agreement on Twitter earlier this week. The Trump administration had lobbied Sudan for weeks to follow the United Arab Emirates' lead in normalising relations with Israel.
An Israeli delegation visited Sudan earlier this week, and an Israeli official hinted that Sudan and Israel could make a normalisation announcement before US election day on November 3.
Sudan becomes the third Arab League member to move towards normalising relations with Israel this year, after the UAE and Bahrain.
The UAE welcomed Sudan's decision as "historic" and "an important step to enhance security, and prosperity in the region", the Foreign Ministry said in a statement carried by the official WAM news agency.
A potential normalisation deal with Israel could bolster Sudan’s odds of convincing the US Congress not to block Mr Trump’s efforts to remove Khartoum from the terrorism blacklist.
Sudanese Prime Minister Abdalla Hamdok thanked Mr Trump for initiating the process to remove Sudan from the list and noted that Khartoum is working with Congress to conclude the process.
"This truly changes the region. It changes the lives of our peoples for the better and allows us to focus on the task of building our nations, building our future," Mr Netanyahu said via a phonecall to the two other leaders.
Mr Trump said that more Arab states are also looking to recognise Israel including regional power Saudi Arabia.
"We have at least five more that want to come in and we'll have many more than that soon," Mr Trump said in a room packed with smiling aides, few of them wearing masks despite the Covid-19 pandemic.
Mr Trump’s executive action to delist Sudan triggers a 45-day review period on Capitol Hill, during which lawmakers could potentially block Khartoum’s removal from the list.
“It is essential that Congress act now to pass the legislation required to ensure that the American people rapidly realise the full benefits of this policy breakthrough,” said Ms McEnany.
Several legislators, including Senate Minority Leader Chuck Schumer from New York, have voiced scepticism of the deal. They have held up legislation on Capitol Hill that would restore Sudan’s sovereign immunity. Mr Schumer and his allies fear that passing the legislation could hinder lawsuits from 9/11 victims seeking to sue Khartoum for its previous support of Al Qaeda.
In New York, Israel’s ambassador to the United Nations, Gilad Erdan, spoke to his Sudanese counterpart Omer Mohamed Ahmed Siddig to discuss co-operation on technology, trade, farming and tourism in the wake of the latest normalisation deal.
"A third peace agreement in just over a month, and with a country that fought Israel and symbolised the Arab refusal to recognize our existence, is a tremendous achievement that proves conclusively that we are living in a historical period that will change the Middle East forever,” Mr Erdan said in a statement.
The breakthrough is expected to be discussed at UN Security Council talks on Monday.
The United States first designated Sudan as a state sponsor of terror in 1993. The $335 million that Sudan deposited into the escrow account would go to the families of the victims from the 1998 Al Qaeda attacks on the US embassies in Kenya and Tanzania, as well as the terrorist group's 2000 attack on the USS Cole. Sudan's former government under Omar Al Bashir harboured Al Qaeda members complicit in the bombings.
Critics of keeping Sudan on the list note that the Sudanese military removed Mr Al Bashir last year after months of popular protests against his decades-long rule. They also note that removing Sudan from the list would unlock foreign assistance that it does not currently have access to as it grapples with a democratic transition, the Covid-19 pandemic and a severe economic crisis.
Iran, Syria and North Korea are the only three countries that will remain designated as state sponsors of terror after Sudan’s formal removal.
