Venezuelan President Hugo Chavez and US Secretary of State Hillary Clinton last night discussed sending ambassadors back to each other's capital in a move to restore normal ties between the two nations.
Mr Chavez, a fierce critic of US policies, expelled the US envoy to Caracas in September and Washington responded by kicking out Venezuela's ambassador in a dispute over US activities in Bolivia.
"Earlier today at the Summit of the Americas President Chavez approached Secretary Clinton, and they discussed returning ambassadors to their respective posts in Caracas and Washington," said US State Department spokesman Robert Wood.
"This is a positive development that will help advance US interests, and the State Department will now work to further this shared goal."
MR Chavez told reporters he had proposed a former foreign minister as his ambassador.
"I have spoken to Roy Chaderton and I have designated him as the new ambassador to the United States," Mr Chavez told reporters on the sidelines of the regional leaders meeting in Trinidad and Tobago.
"Now we just have to wait for the United States to give Mr Chaderton the approval to take up this important post to direct a new era in relations," he said.
The Venezuelan leader made the announcement hours after saying he had no doubt ties with Washington would improve with President Barack Obama in the White House. The two leaders exchanged several friendly greetings during the summit.
MR Chaderton was formerly Mr Chavez's foreign minister and Venezuela's representative in the Organisation of American States in Washington.
Relations between Opec member Venezuela and its major oil customer, the United States, have been frayed since Mr Chavez came to power and positioned himself as Cuba's closest ally and a standard-bearer for anti-US sentiment in Latin America.
Mr Obama met Mr Chavez on Friday at the start of the US president's first encounter with Latin American and Caribbean leaders, where he reached out to the Americas by offering a possible new beginning with Cuba.
Reuters