Chinese dissidents Chen Guangcheng is expected to be allowed to leave China, according to US officials.

China earlier said in a statement released by its foreign ministry that Chen could apply to study abroad like other citizens.

"Chen Guangcheng is currently being treated in hospital," a Chinese foreign ministry spokesman, Liu Weimin, said on Friday.

"If he wants to study abroad, he can apply through normal channels to the relevant departments in accordance with the law, just like any other Chinese citizen."

Secretary of State Hillary Clinton, currently on a visit to Beijing, said there had been progress on the dissident’s case and was encouraged by China’s statement.

"Over the course of the day progress has been made to help him have the future that he wants and we will be staying in touch with him as this process moves forward,

"This is not just about well known activists; it's about the human rights and aspirations of more than a billion people here in China and billions more around the world and it's about the future of this great nation and all nations," Clinton added.

The US has indicated it would give any application received by Mr Chen priority.

"Mr Chen has been offered a fellowship from an American university, where he can be accompanied by his wife and two children," US state department spokeswoman Victoria Nuland said in a statement.

"The Chinese government has indicated that it will accept Mr Chen's applications for appropriate travel documents.

"The United States government expects that the Chinese government will expeditiously process his applications for these documents, and make accommodations for his current medical condition,

"The United States government would then give visa requests for him and his immediate family priority attention."