American officials have told US media the US is looking to open an embassy in Havana in the coming months.
The moves are part of a deal that saw the release of American Alan Gross by Cuba and includes the release of three Cubans jailed in Florida for spying.
US President Barack Obama is making a statement later.
Mr Gross, 65, has spent five years behind bars after being accused of subversion, for trying to bring internet services to communities in Cuba.
He earlier left Cuba on a US government plane and was freed on humanitarian grounds.
His arrest and imprisonment had undermined attempts to thaw diplomatic relations between the two countries.
