The French Foreign Minister Dominique de Villepin has called for 'progressive' normalisation of European Union ties with Libya.
His call came after Libya agreed to pay a €133m settlement to families bereaved by a 1989 bombing of a French plane.
The plane exploded over the Sahara Desert and went down in the African state of Niger, killing 170 people including 54 French citizens.
Tripoli has never accepted responsibility for the bombing, despite the conviction of six Libyan officials tried in absentia by a French court in 1999. Libya has refused to extradite the six.
In the last six months, Libya has taken responsibility for the Lockerbie bombing and agreed payouts, and said it would cease banned weapons programmes.
While the United States has praised Tripoli's new stance on weapons, Washington has said its sanctions against Libya will remain in place.
