Prime Minister Laisenia Qarase elected in September

Fiji's exclusion from Commonwealth business was a punishment for the overthrow of the elected government by nationalist gunmen led by George Speight in May 2000, and the suspension of the country's multi-racial constitution.

The stand-off at the parliament compound in the capital Suva lasted for 56 days.

When the deposed ethnic-Indian Prime Minister Mahendra Chaudhry finally emerged from captivity, Fiji's political landscape had changed.

His government had been replaced by an interim administration, installed by military commanders who wanted to strip the Indo-Fijian minority of its political rights.

Return to democracy

The Commonwealth Secretary-General Don McKinnon has been encouraged by the country's return to democratic rule since a general election in August returned Laisenia Qarase as the new prime minister.

The two men met earlier this month to discuss Fiji's re-admittance into the organisation.

In the past, Mr Qarase has accused the Commonwealth of meddling in Fiji's domestic affairs.

New Zealand's foreign minister, Phil Gough, said his government was lifting all remaining political, sporting and military sanctions on Fiji.

Legal action

Despite the endorsement of the Commonwealth, the Ingarisay government is facing court action because of its refusal to allow its main political rival, the Fiji Labour Party, led by the ousted prime minister Mahendra Chaudhry into cabinet.

The constitution allocates seats in cabinet to all major parties in proportion to their numbers in Parliament.

A hearing is scheduled to begin in February in the court of appeal, shortly before the treason trial of coup leader George Speight is due to start. He is being held with a dozen of his close advisers on a prison island after being arrested more than a year ago.