Omar al-Bashir (file photo)

Sudanese President Omar Hassan al-Bashir has agreed to re-establish diplomatic ties with Chad after severing relations following a rebel attack on the Sudanese capital, Khartoum in May.

Senegalese officials, who have been meditating talks between the two sides, made the announcement Friday in Senegal's capital, Dakar.

Chad has denied any involvement in the attack by Darfur-based rebels on Khartoum and its twin city, Omdurman.

Chad and Sudan regularly accuse each other of supporting rebel movements in the other country.  In February, Chad accused Sudan of supporting an attack on the Chadian capital, N'djamena, by Chadian rebels.

Chad and Sudan have signed several peace agreements in recent years, but relations have remained hostile.  

U.N. officials say eastern Chad is now home to about 250,000 refugees from Darfur.

The officials say there are also about 180,000 Chadians who have been displaced as a result of fighting locally and in Darfur. 

Some information for this report was provided by AFP, AP and Reuters.