Israel and Sudan announced plans on Friday (October 23) to normalize relations in a deal brokered by the U.S..
That makes Khartoum the third Arab government to set aside hostilities with Israel in the last two months.
Israeli president Benjamin Netanyahu hailed the start of "new era" for his country's relations with the Arab world.
He thanked President Donald Trump and his team for their role, and said Israeli and Sudanese delegations would soon meet to discuss cooperation over, quote, "agriculture, trade and other areas important to our citizens."
But other parties were less enthusiastic.
Iran's foreign ministry on Saturday described it as "phony" - and accused Khartoum of paying a ransom in return for Washington removing it from a list of state sponsors of terrorism.
President Trump announced last week he would take Sudan off the list once it had deposited $335 million it had pledged to pay in compensation.
Khartoum has since placed the funds in a special escrow account.
The announcement of the US-brokered deal comes less than two weeks before President Trump faces voters in an election.
Trump's aides view his pro-Israel policies as appealing to Christian evangelical voters, who are among his biggest supporters.
Palestinians, also unhappy with Sudan's decision, lamented the deal as a "new stab in the back."
And say Arab countries have set back the course of peace by abandoning a long-standing demand that Israel give up land for a Palestinian state before it can receive recognition.
Sudan follows the United Arab Emirates and Bahrain - who both reached normalization agreements with Israel last month.