"The Islamic Republic of Iran and Sudan, following contacts between high-ranking officials on both sides, have agreed to resume diplomatic relations," the ministry wrote on Telegram.
The governments of both countries have also agreed to develop friendly bilateral relations based on respect for each other's sovereignty, equality, mutual interests and peaceful coexistence, the ministry added.
"The two states have agreed to develop cooperation in various fields that suit the interests of Iran and Sudan, as well as to ensure stability and security in the Middle East and North Africa," the statement read.
Iran and Sudan have further agreed to take steps to reopen their embassies in each other's countries in the near future and exchange envoys to study ways of expanding partnership, the ministry also said.
Sudan severed diplomatic ties with Iran in January 2016 after Saudi Arabian diplomatic missions in Iran were attacked following the execution of Shiite cleric Nimr al-Nimr. In early July, Iranian Foreign Minister Hossein Amirabdollahian and his Sudanese counterpart, Ali Al-Sadiq, held talks on the sidelines of a conference of representatives of the Non-Aligned Movement member states, meeting for the first time after diplomatic relations between the countries were severed.