The move to restore diplomatic relations came in the wake of the overthrow of long-time Sudanese President Omar al-Bashir, who was ousted in a coup in April after 30 years in office.
The Sudanese Foreign Ministry on Thursday said in a statement the move showed the US's intention to strengthen relations and support the country's transitional government and reforms to establish peace, justice and democracy, Efe news reported.
Sudan will also name an ambassador to Washington, a move the foreign ministry hoped would pave the way toward reconciliation and constructive cooperation between both countries.
Sudanese Prime Minister Abdalla Hamdok earlier posted on Twitter that "solidifying international relations is a very important milestone in any country's path to development".
"After 23 years, it is great to finally witness the initiation of the process of exchange of Ambassadors between Sudan & USA.
"This is a concrete step towards rebuilding Sudan," added Hamdok, who is currently on an official visit to the US.
US-Sudan relations deteriorated when al-Bashir took power after he led a coup in the oil-rich country in 1989.
The US in 1993 designated Sudan as a state sponsor of terrorism and started imposing sanctions against it four years later.
Washington decided to lift economic restrictions and a trade embargo on Sudan after two decades in 2017 but kept the country on its State Sponsors of Terrorism list.
A year later, the Sudanese army resumed military relations and cooperation with the US.
Sudanese authorities have been seeking to remove the country from the US list since the formation of the transitional government in August this year to resume full relations not only with Washington but also with international entities such as the World Bank and the International Monetary Fund.
Sudan's opposition and the ruling military council that took power after al-Bashir was toppled in August and signed a power-sharing deal for a three-year transitional period in the country.
( With inputs from IANS )