Deputy Foreign Minister Hasuna Shawsh told journalists on Wednesday that Libya had informed the Arab League it was ready to order the return of its ambassador to Riyadh.

Tripoli, which has always denied any conspiracy to kill then crown prince Abdullah, now the king, added it hoped to receive a Saudi ambassador and re-establish diplomatic relations between the two countries.

Last month, five Libyans including intelligence officers who had been detained in Saudi Arabia over the alleged plot, were pardoned by Abdullah shortly after he became monarch on the death of his half-brother king Fahd.

Details of the purported conspiracy came to light last year when an American Muslim activist pleaded guilty to illegal financial dealings with Libya.

He testified he had been involved in a Libyan plan to murder the crown prince in 2003.