The US may take Cuba off its state terror sponsors' list, as relations between the two countries continue to thaw.
The news comes as Cuba holds the highest-level meeting with US diplomats in more than 50 years.
US Secretary of State John Kerry and Cuban Foreign Minister Bruno Rodriguez are meeting in Panama today while attending a regional summit.
It is the most important meeting between the two sides since the earliest days of the Cuban revolution more than half a century ago.
The meeting follows the historic opening by President Barack Obama and his Cuban counterpart Raul Castro announced on 17 December last year.
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Gallery: A History Of US-Cuba Relations In Pictures
1 January 1959: Fidel Castro's rebels - under the command of Che Guevara (R) - sweep into Havana. Dictator Fulgencio Batista, who had strong relations with the American mafia and large US corporations, flees Cuba. The US soon recognises the new government
June-October 1960: Castro announces the nationalisation of nearly all US businesses - and American-owned oil refineries, after they refuse to process Soviet oil
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