Cuban-Americans will be allowed to travel to the island once a year and send more money to relatives there.

Curbs on sending medicines and food have also been eased. The measures were part of a $410bn bill to fund US government operations.

The legislation was approved by the Senate after clearing the House of Representatives last month.

The legislation overturns rules imposed by the Bush administration which limited travel to just two weeks every three years, and confined visits to immediate family members.

President Obama – who needs to sign the bill – has said he supports it.

But he has said that like previous American presidents, he will only consider a full lifting of the embargo once Cuba’s communist government makes significant moves such as the holding of democratic elections.

Cuba’s President Raul Castro has said he is prepared to negotiate with the new US administration, providing there are no preconditions.