New Zealand and Australia have restored full diplomatic ties with Fiji following assurances from the Pacific Island country that it's making progress towards democratic elections.
Sports and other travel sanctions against Fiji are also being eased.
Foreign Ministers from Australia, Fiji and New Zealand - Senator Bob Carr, Ratu Inoke Kubuabola and Murray McCully - met in Sydney on Monday to discuss the elections planned for 2014.
They agreed that the countries would exchange high commissioners to "ensure channels of dialogue between the respective countries were open and effective", the trio said in a joint statement.
During the meeting Mr Kubuabola provided an update on progress in Fiji towards the elections, including preparations for the constitutional consultations and electronic voter registration.
Mr McCully said he and Senator Carr raised concerns about media freedoms and human rights in the country but Mr Kubuabola reiterated his government's commitment that free, fair and inclusive elections can be held.
"We have indicated we should be taking the assurances we've been given at face value and recognise the progress that's been made, with the restoration of full diplomatic relations," Mr McCully told NZ Newswire.
While a sanctions regime was still in place against Fiji, Australia and New Zealand had agreed to be "more flexible" in its enforcement.
In heated exchanges since Commodore Frank Bainimarama's military coup in 2006, Fiji has expelled the top Australian and New Zealand diplomats from Suva and both countries have retaliated in kind.
Mr McCully said it would take "some weeks" to appoint a new high commissioner.
Despite three New Zealand diplomats having been expelled from Suva, he said about four remained in the mission - including NZAid representatives.
"Today's decision will allow us to move back to a normal diplomatic position in Fiji," he said.
It also comes on the same day that former Fiji prime minister Laisenia Qarese, who was ousted in the 2006 military coup, was convicted on nine charges of abuse of office and failing to discharge his duty.
In the case brought by Fiji's anti-corruption watchdog, the charges related to his time as a director of a government investment company called Fijian Holdings from 1992 to 1995.The conviction means he will not be eligible to contest the elections in 2014.
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