The State Department reversed the Trump administration's last minute decision, removing the Houthi rebel group from the list of terrorist organizations.

"We have formally informed parliament of our intention to revoke the decision to see Ansarallah as a foreign terrorist organization and will provide more information in the next few days," said a State Department official on Thursday.

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Houthi rebels in Sana, Yemen, September 2019 Photo: AP.

The official added that the withdrawal of the decision is only intended to prevent a serious impact on the people of Yemen, which is witnessing the worst humanitarian disaster in the world, but does not mean changing the US opinion.

Mike Pompeo, secretary of state in the Donald Trump administration, announced his decision to list Houthi on the terrorist list less than two weeks before leaving office.

Many humanitarian organizations, diplomats and lawmakers warn the decision could destabilize and exacerbate the humanitarian crisis in Yemen, a country heavily ravaged by war.

Secretary of State Antony Blinken told reporters last week that he was "particularly focused" on reviewing the Trump administration's decision.

"What's especially important in the midst of this crisis is that we must do everything we can to provide humanitarian assistance to the people of Yemen in need of help. And what we want is to make sure any of our actions take place.

Yemen has plunged into civil war between Iran-backed Houthi rebels and the Saudi-led coalition.

In a speech at the State Department headquarters on Feb. 4, President Biden also announced the halt of all US support to Saudi Arabian offensive operations in the war in Yemen, including arms sales.

"This war must stop," Biden said.

Sen. Chris Murphy, who has long opposed Saudi Arabia's campaign in Yemen, praised the administration's move.