US President signed on Monday an executive order lifting sanctions against Libya, White House spokesman Scott McClellan said.

The latest move is expected to trigger release of more than 1 billion US dollars to families of Pan Am 103 victims.

Bush's order terminated the national emergency declared in 1986 under the International Emergency Powers Act and removed remaining economic restrictions on aviation services with Libya, deputy State Department Adam Ereli told a news briefing.

Besides, Ereli said, the order also unblocked approximately 1.3 billion dollars in assets frozen under the Libya sanctions program belonging to both Libyan and non-Libyan entities.

The removal of sanctions and restriction were "taken in response to actions that Libya has taken over the past nine months to address concerns by the international community about its weapons of mass destruction programs," Ereli added.

Libyan leader Moammar Gadhafi announced last December to dismantle his chemical, biological and nuclear weapons programs.

The United States resumed direct diplomatic ties with Libya on June 28 after a 24-year break.