El Salvador and Cuba signed a document on Monday reestablishing their diplomatic ties after a 50-year break, according to information reaching here.
El Salvador's newly-elected President Mauricio Funes announced his government's decision to restore the relations with Cuba in his inauguration speech on the same day.
Cuba's Vice President Esteban Lazo, who was in San Salvador attending Funes' swearing-in ceremony, told media that the announcement had been expected.
El Salvador has thus become the last Latin American nation to restore full diplomatic relations with Cuba.
Funes, who represents former Marxist guerrillas the Farabundo Marti National Liberation Front (FMLN), vowed to restore all links with Cuba in the presidential campaign.
The FMLN was formed by five dissident Salvadorian left-wing groups in Cuba in 1980.
El Salvador broke ties with Cuba in 1959 after Fidel Castro took power.