
In a joint statement, both sides said they wanted to promote mutual understanding and cooperation and that ambassadors would be named.
The Vatican, a sovereign city-state surrounded by Rome, now has diplomatic relations with every country on the Arabian Peninsula except Saudi Arabia.
Oman, a Sultanate, is predominately Muslim, like the other countries on the peninsula. Oman has only four Catholic parishes and 12 priests, the Vatican said in a separate statement.
The Vatican hopes that with the upgrading of relations, the Church could continue to contribute to the social well-being of the country, the statement added.
Pope Francis visited Abu Dhabi in the United Arab Emirates in 2019 and Bahrain last year.
In both places, he attended inter-religious meetings to promote dialogue among faiths.