The U.S. Treasury Department says it will allow Cuba to take part in the World Baseball Classic, despite a U.S. law barring activities that would earn money for Cuba's communist government.

A statement released Friday said officials have reached an agreement that would ensure the regime of Cuban leader Fidel Castro does not profit from the event.

The Treasury last month denied Cuba's first request for permission for its players to enter the United States to compete.

In response, Cuba offered to donate any winnings it receives to benefit victims of Hurricane Katrina.

The World Baseball Classic is scheduled for March, with games in Japan and Puerto Rico as well as the United States. But Puerto Rico had said it would not host the games if Cuba could not play.