Iran, North Korea, Syria and Venezuela are still on the US list, it adds.

In March last year, a US congressional delegation visited Eritrea seeking to strengthen relations with the country.

After the warming of relations between Ethiopia and Eritrea that began just over a year ago, Asmara has made great diplomatic efforts in the region, and with the wider international community, to improve its standing.

It had largely been isolated after having been accused of supporting the Somalia-based militant al-Shabab group. Eritrea always denied this.

Last November, the UN Security Council lifted the sanctions imposed on Eritrea over the allegation.