File photo: Sudan s top army general Abdel Fattah al-Burhan gives a press conference at the General Command of the Armed Forces in Khartoum. AFP
Burhan "issued a decree lifting the state of emergency nationwide," the council said in a statement.
The order was made "to prepare the atmosphere for a fruitful and meaningful dialogue that achieves stability for the transitional period", it added.
Sunday's decision came after a meeting with senior military officials recommending the state of emergency be lifted and people detained under an emergency law be freed.
It also came after the latest calls by UN special representative Volker Perthes for removing the state of emergency, following the killing of two protesters during anti-coup protests on Saturday.
Sudan has been rocked by mass protests since the military take over, which have been met by a violent crackdown that has left nearly 100 people dead and hundreds wounded, according to pro-democracy medics.
Hundreds of activists have also been rounded up in the clampdown under emergency laws.
On Sunday, military officials also recommended allowing the live TV unit of the Qatar-based network Al Jazeera to resume operations in Sudan, after authorities banned it in January for "unprofessional" coverage of protests.
Sudan has been reeling from deepening unrest since Burhan led the October 25 coup, upending a fragile transition following the 2019 ouster of president Omar al-Bashir.
The military takeover triggered widespread international condemnation and punitive measures, including crucial aid cuts by Western governments pending the resumption of the transition to civilian rule.
Sudan, one of the world's poorest countries, is also struggling from a plunging economy due to decades of international isolation and mismanagement under Bashir.
The United Nations, along with the African Union and regional bloc IGAD, have been pushing to facilitate Sudanese-led talks to resolve the crisis.
Western governments have backed the UN-AU-IGAD bid and urged Sudanese factions to participate in the process.
Burhan has pledged to free political detainees to set the stage for talks among Sudanese factions.
Last month, Sudanese authorities released several anti-coup civilian leaders arrested in the crackdown.