Eritrea is being removed from the United States government's list of countries deemed not to be cooperating fully with U.S. counterterror efforts.
The reclusive East African nation is no longer listed on the announcement that will be published in the Federal Register on Wednesday.
Still listed on the U.S. announcement are Iran, North Korea, Syria and Venezuela.
Eritrea is one of the world's most closed-off nations but last year it agreed to a remarkable restoration of ties with neighboring Ethiopia, two decades after a bloody border war.
The diplomatic breakthrough contributed to the United Nations Security Council lifting sanctions on Eritrea late last year.
A U.S. congressional delegation earlier this year visited Eritrea for the first time in 14 years.