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Venezuela expelled the U.S. ambassador to Washington in September and responded quickly dismissing Venezuelan envoy in a dispute involving allegations of Bolivia, an ally of Venezuela, noting that Washington was meddling in its internal affairs.

On Wednesday, Venezuela, one of the largest suppliers of oil to United States, announced it was reinstating its ambassador to Washington and a U.S. official said that United States would do the same.

The leftist Venezuelan President Hugo Chavez, has moderated its criticism of the United States foreign policy since Barack Obama took office in January, partly because the president is popular in Latin America, unlike his predecessor George W. Bush.

Obama has pledged repeatedly to engage with countries considered problematic for United States.

The State Department spokesman, Ian Kelly, said United States to restore the U.S. ambassador Patrick Duddy from Caracas in his post, adding that the diplomat was planning to return later this week.

This important step will help to advance the interests Americans, improving bilateral communications and increasing our arrival to the Venezuelan people, said Kelly to journalists.

(Reporting by Arshad Mohammed, Edited by Juana Casas in Spanish)