A general view of the Sandaga market, which was built in 1935 with examples from Sudan and Mali architecture and is being emptied for renovation, in Dakar, Senegal on Sunday. (Photo: agencies)

The EU's diplomatic chief on Monday welcomed US President Donald Trump's announcement that he is ready to remove Sudan from a US blacklist of state sponsors of terrorism.

The move, a major boost for Sudan's civilian-backed government after decades as an international pariah, came after Khartoum agreed to a $335 million compensation package for victims and relatives of past attacks, Trump wrote on Twitter.

EU foreign affairs high representative Josep Borrell said the proposed delisting was recognition of Sudan's progress under Prime Minister Abdalla Hamdok.

"US intention to lift the State Sponsor of Terrorism designation of #Sudan is momentous," Borrell wrote on Twitter.

"It enhances its [Sudan's] integration into international community and access to world economy. EU fully supports Sudan transition."

Sudan is one of four nations that was branded by Washington as a state sponsor of terrorism along with Iran, North Korea and Syria - severely impeding economic development, with few major foreign investors willing to run afoul of US laws.

Sudan was designated in 1993 during the rule of leader Omar al-Bashir, who welcomed Al-Qaeda founder Osama bin Laden in the 1990s as he imposed a brand of political Islamism on the country.