PHNOM PENH — Cambodia said Monday that Thailand's fugitive former premier Thaksin Shinawatra had resigned as its economics adviser, clearing the way for a thaw in relations between the nations.
Phnom Penh said Thaksin, who was ousted in a 2006 coup and lives in self-imposed exile to avoid a jail term for corruption, had stepped down "because of personal difficulties in fulfilling his role completely".
"The Cambodian government accepts the request by His Excellency Thaksin Shinawatra with thanks to the contributions that he has made to the Cambodian economy," a statement said.
Thaksin remains an influential and controversial figure on Thailand's turbulent political scene, galvanising his "Red Shirt" supporters earlier this year to join mass protests against the current government.
The two countries recalled their respective ambassadors in November last year after Cambodian Prime Minister Hun Sen riled Thailand by appointing the telecoms tycoon-turned-premier.
Thai Prime Minister Abhisit Vejjajiva indicated Monday that they could reinstate the diplomats in light of Thaksin's departure, describing it as a "good sign".
"If relations return to normal, it is good for both countries to have ambassadors," he told reporters.
Ties between the two countries have been strained since July 2008 by a series of deadly border clashes over land surrounding an 11th century Cambodian temple after it was granted UN World Heritage status. AFP