US Secretary of State John Kerry and Cuban Foreign Minister Bruno Rodriguez have held talks, in the highest level meeting between the two countries in more than half a century.

The two held closed-door discussions after arriving in Panama for a summit.

Meanwhile, the US state department has reportedly recommended that Cuba be removed from its list of states said to sponsor terrorism.

Such a move could pave the way for the two countries re-opening embassies.

US President Barack Obama and Cuban leader Raul Castro are also due to meet on the sidelines of the Summit of the Americas in Panama over the coming days.

"Secretary Kerry and Cuban Foreign Minister Rodriguez had a lengthy and very constructive discussion this evening. The two agreed they made progress and that we would continue to work to resolve outstanding issues," a senior US official said.

The last comparable high-level meeting was in 1959, when Fidel Castro met then Vice-President Richard Nixon.

Diplomatic ties froze two years later, but last year Obama announced that a "new chapter" in relations would commence.

At the same time, Obama ordered a review of Cuba's status which he now confirms has finished its work.

(BBC)