"This decision reflects the administration's commitment to closing the detention facility at Guantanamo Bay," State Department spokesperson Jen Psaki told reporters on Monday.
Sloan, who has served in senior government positions in both Democratic and Republican administrations, would resume duty on July 1.
The continued operation of Guantanamo is not efficient, effective, or in the interests of US national security, Psaki said while referring to a recent statement by President Obama in this regard.
"Special Envoy Sloan brings a wealth of experience as an accomplished litigator and pragmatic problem-solver, skills that will prove valuable as he serves as lead negotiator for the transfer of Guantanamo detainees abroad and manages the multitude of related issues," she said.
Currently, there are 166 detainees at the Guantanamo detention centre, down from 242 when Obama had taken over as the President in January 2009.
A hunger strike by more than 100 of the 166 prisoners protesting their conditions and indefinite confinement has prompted fresh calls for the closure of the facility run by the military.
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