The United States on Monday made clear its intention to formally recognize southern Sudan as an independent state in July and initiated the process of withdrawing Sudan from the list of state sponsors of terrorism, as Sudan formally accepted the final result of the referendum that splits the largest African state in two.

"On behalf of the people of the United States, I congratulate the people of southern Sudan for a successful and inspiring referendum in which an overwhelmingly majority of voters chose independence," U.S. President Barack Obama said in a statement. "I am therefore pleased to announce the intention of the United States to formally recognize southern Sudan as a sovereign, independent state in July 2011."

The results of the referendum, part of the Comprehensive Peace Agreement inked between north and south Sudan in 2005 ending a two- decade civil war, show 98.83 percent of the voters are in favor of the south's separation from the north. Sudanese President Omar al- Bashir on Monday issued a Republican Decree accepting the final results.

"Now, all parties have a responsibility to ensure that this historic moment of promise becomes a moment of lasting progress," Obama said. "The Comprehensive Peace Agreement must be fully implemented and outstanding disputes must be resolved peacefully. At the same time, there must be an end to attacks on civilians in Darfur and a definitive end to that conflict."

There are still an array of thorny issues to be ironed out by the two sides in Sudan, including border demarcation, citizenship, oil revenue division and the status of the oil-rich Abyei area.

Obama pledged to work with the governments of Sudan and southern Sudan to "ensure a smooth and peaceful transition to independence."

"For those who meet all of their obligations, there is a path to greater prosperity and normal relations with the United States, including examining Sudan's designation as a state sponsor of terrorism," Obama added.

The U.S. has maintained sanctions on Sudan for sponsoring terrorism.

U.S. Secretary of State Hillary Rodham Clinton said on Monday that the U.S. is initiating the process of withdrawing Sudan from the list of state sponsors of terrorism, the first step of which is initiating a review of that designation.

She said in a statement that "Removal of the state sponsor of terrorism designation will take place if and when Sudan meets all criteria spelled out in U.S. law, including not supporting international terrorism for the preceding six months and providing assurance it will not support such acts in the future, and fully implements the 2005 Comprehensive Peace Agreement, including reaching a political solution on Abyei and key post-referendum arrangements."