Sudan's cabinet approved a bill Tuesday abolishing a 1958 law on boycotting Israel, after Khartoum and the Jewish state struck a deal to normalise ties.
"The council of ministers approved a bill repealing the 1958 boycott of Israel law," it said in a statement.
It also emphasised "Sudan's firm position on the establishment of a Palestinian state within the framework of a two-state solution".
The 1958 law was in line with the policies of Arab nations at the time towards Israel.
Penalties for those who violated its stipulations, such as trading with Israelis, included up to 10 years in jail and a hefty fine.
But the political landscape has changed as Sudan, along with Gulf countries and Morocco, have built bridges with the Jewish state in deals mediated by the administration of former US president Donald Trump.
Sudan agreed to normalise ties with Israel in October last year, in a quid pro quo for Washington removing the country from its "state sponsors of terrorism" blacklist months later.
Khartoum maintained a rigid anti-Israel stance during the three-decade Islamist rule of former president Omar al-Bashir, who was ousted amid mass protests in April 2019.
A post-Bashir transitional government has been pushing for re-integration with the international community and to rebuild the country's economy after decades of US sanctions and internal conflict.
The bill will be presented for final approval from the country's ruling Sovereign Council, made up of military and civilian figures, before it is passed into law.