Sudan has signed a deal to compensate the families of 17 American sailors who died when their ship, the USS Cole, was bombed at a port in Yemen in 2000.

This is a key condition set by the US for Sudan to be removed from a terrorism blacklist. It is not clear how much Khartoum will pay.

Al-Qaeda said it had carried out the attack in which the warship was rammed by a rubber dinghy packed with explosives.

The US ruled Sudan was responsible because the two suicide bombers were trained in the country - an allegation denied by Khartoum.