The Vatican has officially recognised the state of Palestine in a new treaty.
The treaty, which is still has to be signed, makes clear that the Holy See has switched its diplomatic relations from the Palestine Liberation Organisation to the state of Palestine.
The Vatican had welcomed the decision by the UN General Assembly in 2012 to recognise a Palestinian state.
But the treaty is the first legal document negotiated between the Holy See and the Palestinian state and constitutes official diplomatic recognition.
"Yes, it's a recognition that the state exists," said the Vatican spokesman, Rev Federico Lombardi.
Palestinian president Mahmoud Abbas is due to visit Pope Francis on Saturday before the canonisation of two new saints from the Holy Land a day later.
The Vatican has been referring unofficially to the state of Palestine for at least a year.
During Pope Francis’s 2014 visit to the Holy Land, the Vatican’s official programme referred to Mr Abbas as the president of the “state of Palestine”.
In the Vatican’s latest yearbook, the Palestinian ambassador to the Holy See is listed as representing “Palestine (state of)”.
The Vatican's foreign minister, Monsignor Antoine Camilleri, acknowledged the change in status, given that the treaty was initially inked with the PLO and is now being finalised with the "state of Palestine".
But he said the shift was simply in line with the Holy See’s position.
Press Association