US Secretary of State Hillary Clinton says Washington will engage directly with Burma's military rulers in a bid to promote democracy there.
Mrs Clinton said sanctions alone had not changed the government's behaviour.
The new approach follows a review of US policy towards Burma initiated after President Barack Obama took office.
Burma's hardline regime has refused to release political prisoners, including Nobel Peace laureate Aung San Suu Kyi, despite international pressure.
Mrs Clinton's announcement came after talks with international diplomats on the sidelines of the UN General Assembly in New York. The talks were chaired by UN Secretary General Ban Ki-moon.
"We want credible democratic reform, a government that responds to the needs of the Burmese people, immediate, unconditional release of political prisoners... serious dialogue with the opposition and minority ethnic groups," she said.
"We believe that sanctions remain important as part of our policy, but by themselves they have not produced the results that had been hoped for on behalf of the people of Burma. read more
