Libya expects the United States to remove it from Washington's list of sponsors of terrorism this year to seal their rapprochement after Tripoli abandoned a programme of prohibited weapons, the Libyan leader's son said.
"Lifting Libya from this list will take place at the end of this year after a series of steps from both sides," Saif al-Islam Gaddafi told reporters late on Monday.
He did not elaborate on what steps would be taken but said the two countries would exchange ambassadors for the first time in more than three decades, likely in the next few days.
A US State Department spokesman said on Monday Libya still had work to do before resuming full diplomatic ties with Washington and being removed from the terrorism list, and declined to say whether there were plans to open a US embassy in Tripoli soon.
Washington strengthened its diplomatic representation in Tripoli after President George W. Bush formally ended the US trade embargo on Libya in September last year to reward it for giving up its weapons of mass destruction programme, but left in place some sanctions related to terrorism.