WASHINGTON: Sudan on Friday agreed to be the latest Arab nation to recognize Israel, President Donald Trump announced in a new diplomatic coup for him days before US elections.

The United Arab Emirates and Bahrain signed an accord at the White House last month to normalize relations with Israel but Sudan is arguably more significant as an Arab nation that has been at war with Israel.

Trump announced the agreement by Sudan's year-old civilian-backed government moments after he formally moved to end the nation's designation of a state sponsor of terrorism, which was a major goal for Khartoum.

Reporters were escorted into the Oval Office where Trump was on speakerphone with Sudan's leadership and Israeli Prime Minister Benjamin Netanyahu, a close ally of the embattled Republican president. "We are expanding their circle of peace so rapidly with your leadership," Netanyahu was heard saying.

Trump said: "There are many, many more coming."

A senior Trump aide, Judd Deere, said that Sudan and Israel "have agreed to the normalization of relations."

As part of the deal to get off the terror blacklist, the White House said that Sudan's transitional government had deposited $335 million to compensate survivors and family members of anti-US attacks that took place when former dictator Omar al-Bashir welcomed Al-Qaeda.

"Today represents a momentous step forward in the United States-Sudan bilateral relationship and marks a pivotal turning point for Sudan," a White House statement said.

The deal with Sudan allows "for a new future of collaboration and support for its ongoing and historic democratic transition," it said.