The suicide bombing tore a large hole in the hull of the USS Cole

Robert Doumar, a Virginia federal court judge, said there was enough evidence that Sudan had helped al-Qaeda, the terrorist group blamed for the attack.

Sudan has denied any links with al-Qaeda and made several unsuccessful attempts to have the case dismissed.

A lawyer for the families said he was "thrilled" with the court's decision.

The families of the victims had initially sued the government in Khartoum for $105m.

'Emotional losses'

In a written ruling, the judge said: "It is depressing to realise that a country organised on a religious basis with religious rule of law could and would execute its power for purposes which most countries would find intolerable and loathsome."

Judge Doumar awarded the families compensation under the Death on the High Seas Act, which permits payouts for economic losses but not for mental suffering.

He calculated the amount they should receive by multiplying the salary of the sailors by the number of years they would have continued to work.

"It is a further tragedy that the laws of the United States, in this instance, provide no remedy for the psychological and emotional losses suffered by the survivors," the judge added.

Financial support

Andrew Hall, a lawyer for the families, said overall he was "thrilled" with the ruling.

But he told the Associated Press news agency he intended to appeal to try to win the families compensation for their pain and suffering.

Lawyers for the families are now responsible for collecting the money from Sudanese assets frozen in the US.

Seventeen US sailors died and 39 more were injured in the attack off the coast of Yemen.

The families argued in court that the Sudanese government gave financial and technical support to al-Qaeda and its leader, Osama Bin Laden.

This, they said, allowed the group to establish training bases, run businesses and even use Sudanese diplomatic passports to carry explosives.