Libyan and US officials have held talks in an historic rapprochement, it has emerged.
The Libyans hailed US President Mr George W. Bush for dropping what it called the negative policies of his predecessors
"Both Libya and the United States have a common willing to rebuild their relations and help furthering peace security and peace in the world," said foreign ministry spokesman Mr Hassouna Chouach. He said Libya and the US have held talks at several levels to mend their relations.
Libya has made previous attempts to mend relations but has been rebuffed by the US after years of mutual hostility over terrorism and Middle East policy issues.
Mr Chouach declined to comment on details of the talks but said officials from the two countries had last met early this month.
The United States confirmed positive talks have been held with Libya that could lead to a lifting of UN sanctions.
But US officials denied a newspaper report saying the United States and the Libyan government were close to a deal that could remove Libya from a US list of states that sponsor terrorism.
Removal of Libya from the list would allow the United States to drop an oil embargo and other sanctions against Libya.