The announcement was made in a tweet by Saudi Arabia's foreign affairs ministry following a meeting in Riyadh between King Salman and the leader of Sudan's Transitional Military Council (TMC), Lt Gen Abdel Fattah Abdelrahman Burhan, and Prime Minister Abdalla Hamdok.
The kingdom also said it would "establish ambitious investment projects" in Sudan and "improve existing projects".
In exchange, Sudan offered to "support the kingdom in international forums".
https://twitter.com/KSAmofaEN/status/1180841694314553344
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Inclusion on the US list of state sponsors of terrorism makes Sudan ineligible for debt relief and financing from lenders like the International Monetary Fund and World Bank.
Saudi Arabia and the United Arab Emirates have provided an aid package of about $3bn (£2bn) to Sudan since former President Omar al-Bashir was ousted in April.