Trump took to Twitter on Monday and said: "Great news. New government of Sudan, which is making great progress, agreed to pay $335 million terror victims and families.
"Once deposited, I will lift Sudan from the state sponsors of terrorism list. At long last, justice for the American people and big step for Sudan."
As per the settlement made between US and Sudan, the latter would pay $335 million to compensate survivors of the bombings and the victims' families.
Sudanese government spokesman Faisal Mohammed Salih told CNN that "the required compensation amount has been deposited in a neutral account".
Reacting to Trump's announcement, Sudanese Prime Minister tweeted: "We very much look forward to your official notification to Congress rescinding the designation of Sudan as a state-sponsor of terrorism, which has cost Sudan too much.
This Tweet and that notification are the strongest support to Sudan's transition to democracy and to the Sudanese people.
"As we're about to get rid of the heaviest legacy of Sudan's previous, defunct regime, I should reiterate that we are peace-loving people and have never supported terrorism."
Sudan has been listed as a state sponsor of terrorism since 1993, CNN reported.
The other three nations on the list are Iran, North Korea and Syria.
Due to the designation, Sudan faces a series of restrictions including a ban on defence exports and sales and restrictions on US foreign assistance.
The August 7, 1998, simultaneous truck bomb explosions that took place at the American Embassies in Dar es Salaam, Tanzania, and Nairobi, Kenya, killed at least 224 people.
The attacks, which were linked to local members of the Egyptian Islamic Jihad, brought the Al Qaeda to the attention of the international community for the first time and led to the FBI designating Osama bin Laden on its list of 10 most-wanted fugitives.
According to the CNN report, Sudan, which was then under the leadership of the now-ousted Omar al-Bashir, sheltered bin Laden and was found to have assisted the Al Qaeda operatives.
(This is from IANS feed with minor edits)