Washington--Obama then notified Congress of his intention to take Cuba off the black list of state sponsors of terrorism, a key sticking point in the negotiations.
Removal from the black list will enable Cuba to access badly needed financing from the International Monetary Fund and World Bank.
On Monday the United States left open the possibility that Obama might visit Cuba next year.
Castro said Tuesday the talks were "going well," and that the countries could exchange ambassadors once Cuba is removed from the black list.
That is set to take place after May 29, the expiration date of a 45-day period for Congress to oppose the move.
Obama's Republican opponents have until then to pass a joint resolution against it in both houses of Congress, but would likely struggle to muster the votes needed to override a presidential veto.
Castro added however that while exchanging ambassadors is one thing, fully normalizing relations is another altogether.
For that to happen, the trade embargo has to be lifted and the military base that the United States maintains in Guantanamo Bay has to be returned to Cuba, Castro said Tuesday.
On another issue, foreign minister Rodriguez said France -- whose President Francois Hollande visited the island this week -- has played a leading role in trying to improve relations between Cuba and the European Union.
These ties have stumbled in recent years over EU concerns about Cuba's record on human rights, including its treatment of political dissidents.
The two sides are negotiating an accord to boost political dialogue and cooperation by the end of this year, and Rodriguez said in the interview he saw this timeframe as feasible.
AFP