The United States on Monday welcomed the Pakistan government's announcement to reinstate deposed Supreme Court Chief Justice Iftikhar Mohammed Chaudhry, describing it as a 'statesmanlike decision' to defuse a serious confrontation and a 'substantial step' toward national reconciliation.

"We welcome the announcement by the government of Pakistan of its plans to reinstate former Chief Justice Iftikhar Mohammed Chaudhry," the US Embassy said in a statement.

"This is a statesmanlike decision taken to defuse a serious confrontation, and the apparent removal of this long-standing national issue is a substantial step towards national reconciliation," it said.

Pakistan Prime Minister Yousuf Raza Gilani [Images] today announced the government's decision to reinstate Chaudhry and other judges sacked in 2007 by then President Pervez Musharraf [Images].

President Asif Ali Zardari [Images] had come under massive pressure to defuse a standoff with main opposition Pakistan Muslim League-N leader Nawaz Sharif [Images], who led a mass movement demanding reinstatement of sacked judges.

"Now is the time for all Pakistanis and their political representatives to work together, with the support of their friends and allies, to peacefully strengthen their democracy and ensure a positive dialogue as they move forward to deal with the many issues confronting them," the US embassy statement said.