The European Union has said it will suspend all sanctions against Zimbabwe once a referendum is held on a new constitution.
In a statement, released on Monday, EU foreign ministers said that this would be an ‘important milestone’ towards holding democratic elections.
Sanctions would be suspended on over 100 individuals, who are subject to a travel ban and asset freeze.
"The EU agrees that a peaceful and credible constitutional referendum would represent an important milestone in the preparation of democratic elections that would justify a suspension of the majority of all EU targeted restrictive measures against individuals and entities," the statement said.
UK Foreign Secretary William Hague said that the sanctions on President Robert Mugabe will remain.
"This approach will demonstrate to reformers across the political spectrum that the EU is serious about responding to concrete progress on the ground," he said.
"It also puts the onus on the government of Zimbabwe to live up to their commitments. These decisions will be kept under constant review and if the situation deteriorates, we will of course not hesitate to respond appropriately."