Sudan has agreed to compensate the families of 17 US sailors who died when their ship, the USS Cole, was bombed by al-Qaeda at a port in Yemen in 2000.
This is a key condition set by the US for Sudan to be removed from its list of state sponsors of terrorism.
The US ruled Sudan was responsible for the attack as the two suicide bombers involved were trained in the country.
Removal from the US blacklist would allow sanctions to be lifted, a major objective of Sudan's new government.
High inflation and shortages of fuel and foreign currency helped trigger the protests which led to the downfall last April of the long-serving President Omar al-Bashir.
It is not clear how much Khartoum has agreed to pay to the families, but the Reuters news agency quotes a source close to the deal as saying it is $30m (£23m).
Why now?
Sudan's new rulers are desperate to end the country's economic isolation and gain access to the dollar-based international financial system to attract loans and investment.
The compensation is one of several steps taken recently to appease Sudan's critics.
At least 40 people were wounded in the attack in 2000
The transitional…
