No date has yet been set for Gaddafi's meeting with Blair
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A US diplomat has been stationed in Tripoli, the first full-time American presence in Libya in decades.
Confirming the appointment, a US State Department spokesman also said other officials were in Libya, helping to dismantle its weapons programmes.
Earlier, it was announced that the UK Prime Minister Tony Blair was set for a historic meeting with the Libyan leader Colonel Muammar Gaddafi.
Libya's relations with the West have thawed considerably in recent months.
Last August, Tripoli accepted responsibility for the 1988 bombing of Pan Am Flight 103 over Lockerbie in Scotland and agreed to pay up to $10m to each of the families of the victims.
Then in December, Libya agreed to dismantle its programmes for weapons of mass destruction and allow unconditional inspections.
Diplomatic move
On Tuesday, spokesman Richard Boucher confirmed that an American diplomat had been stationed in the US interests section of the Belgian embassy in Tripoli - the first permanent diplomatic presence in 25 years.
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COMING IN FROM THE COLD
16 Aug 2003: Libya accepts responsibility for Lockerbie bombing and agrees to compensate victims
1 Sep: France and Libya announce compensation deal over 1989 plane bombing
12 Sep: The UN Security Council votes to lift more than a decade of sanctions
20 Dec: Libya renounces weapons programmes and agrees unconditional inspections
10 Feb 2004: Libyan foreign minister visits London. Meeting between UK prime minister and Colonel Gaddafi announced
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"I expect that sooner or later, probably sooner, the Libyans will have diplomats in Washington," Mr Boucher said.
He said US diplomats were also accompanying weapons experts, who are helping Libya "eliminate all elements of the nuclear weapons and missile programmes".
Washington has acknowledged that Libya is making a good-faith effort to change its policies of old, says the BBC's Adam Brookes in Washington.
He says Washington has forecast further improvements in relations.
Unlike the United Nations, the US has so far refused to lift sanctions on Libya.
Meanwhile on Tuesday, Abdulrahman Shalgam became the first Libyan foreign minister to visit London since 1969.
'Milestone'
At a news conference with Mr Shalgam, his British counterpart Jack Straw called the visit "tangible proof" of improving relations between Libya and Britain.
Mr Blair himself hoped to meet Colonel Gaddafi "as soon as convenient" - although a date had yet to be fixed, Mr Straw said.
Diplomatic relations between the UK and Libya were broken off in 1984, after a British policewoman, Yvonne Fletcher, was shot outside the Libyan embassy in London.
Asked about the as yet unresolved murder, Mr Shalgam said his country was willing to discuss "any file".
The UK Foreign Office has described Tuesday's talks as a "milestone in what have been steadily improving relations" between Libya and the UK.