WASHINGTON (Reuters) - The United States and Sudan plan to exchange ambassadors after a 23-year hiatus, US Secretary of State Mike Pompeo said on Thursday, in the latest sign of improved relations between the two countries.

Relations between Washington and Khartoum have improved since the ouster of former President Omar al-Bashir in April and the formation of a civilian transitional government in August.

The announcement came that the two countries would start exchanging ambassadors again during Sudanese Prime Minister Abdullah Hamdouk's first visit to Washington on Wednesday.

"The resolution is an important step towards strengthening US-Sudanese relations, especially with the civilian-led transitional government working to implement the broad reforms embodied in the political agreement and the August 17, 2019 constitutional declaration," Pompeo said in a statement praising Bhamdok.

Hamdock discussed strengthening relations between the United States and Sudan during his meeting in Washington with US Under Secretary of State for Political Affairs David Hill.

"The consolidation of international diplomatic relations is an important milestone in the development map. After a 23-year hiatus, it is great to see the start of the exchange of ambassadors between Sudan and the United States. This is an important step towards rebuilding Sudan," Hamdouk said on Twitter after the meeting.

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Tense relations
Relations between the United States and the al-Bashir regime, which took power in 1989 and adopted an Islamic approach, were tense, and al Qaeda leader Osama bin Laden was hosted in his country for a while.

After two attacks on the US embassies in Kenya and Tanzania in 1998, the United States destroyed a missile attack on the Shifa pharmaceutical factory in Sudan, accusing it of producing nerve gas, a charge Khartoum strongly denied.

Washington still classifies Sudan as a state sponsor of terrorism, which the new government says impedes foreign investment. While sympathetic to Sudan's demands, US officials say removing the designation is a time-consuming legal process.

In congressional talks, US lawmakers pledged support for the new Sudanese government, but stressed the need to reach a settlement with the families of the victims of the attacks and the families of victims of an attack on the USS Cole in 2000, which Washington accuses the Sudanese regime of masterminding.

The deputies spoke of the need for "financial transparency in the security sector and remnants of the former regime who could support international terrorism," according to a statement by the House Foreign Affairs Committee.

The months-long protest against rising fuel and bread prices and a lack of liquidity led to an uprising against Bashir, who was ousted by the army in April.

The Transitional Government of Sudan was formed in August and agreed with the United States that it could initiate dialogue with international institutions while remaining on the list of states that are sponsors of terrorism.