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The UK will hand over sovereignty of the remote Chagos Islands to Mauritius after a decades-long dispute.
The deal to transfer the Indian Ocean archipelago to Mauritius includes the tropical atoll of Diego Garcia, home to a military base used by the UK and the US that plays a crucial role in the region's stability and international security.
Under the agreement, the base will remain under UK and US jurisdiction for at least the next 99 years.
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The UK government said the treaty would "address wrongs of the past and demonstrate the commitment of both parties to support the welfare" of Chagossians - the native people of the islands.
US President Joe Biden welcomed the move, saying it was "mutually beneficial", while Secretary of State Antony Blinken hailed it as a "win for diplomacy".
Several leading Conservatives have called the decision "weak", with former security minister Tom Tugendhat saying it is a "shameful retreat undermining our security and leaving our allies exposed".
Concerns have been raised a future Mauritian government will not adhere to the agreement and will allow China, which is heavily invested in Mauritius, to take over the base.
Package of financial support
A statement from the Mauritian and UK governments said Mauritius is now "free to implement a programme of resettlement" on the islands, other than Diego Garcia, and the UK will provide money and other support to Chagossians who had to leave.
The UK will also provide a "package of financial support" to Mauritius, including annual payments for the next 99 years and will provide funding for an infrastructure partnership.
Addressing the people of Mauritius, Pravind Jugnauth, the prime minister, said: "There are some people who thought that it might have been impossible for a small country like Mauritius to have achieved justice against superpowers.
"Despite all this - we remained true to our convictions to end colonisation in our country.
"Today, 56 years after our independence, our decolonisation is complete."
Speaking to Sky News, foreign minister Maneesh Gobin also said the deal marked a "historic day" that was good for two "sovereign nations".
On the question of China's influence, the foreign minister said it was "unfortunate" that the country kept coming up in the discussion of the Chagos Islands.
Foreign Secretary David Lammy said: "This government inherited a situation where the long-term, secure operation of the Diego Garcia military base was under threat, with contested sovereignty and ongoing legal challenges.
"Today's agreement secures this vital military base for the future.
"It will strengthen our role in safeguarding global security, shut down any possibility of the Indian Ocean being used as a dangerous illegal migration route to the UK, as well as guaranteeing our long-term relationship with Mauritius, a close Commonwealth partner."
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'Through diplomacy, countries can overcome challenges'
The US president welcomed the move, saying: "I applaud the historic agreement.
"It is a clear demonstration that through diplomacy and partnership, countries can overcome long-standing historical challenges to reach peaceful and mutually beneficial outcomes."
The agreement is subject to the finalisation of a treaty and supporting legal instruments, with both Mauritius and the UK committing to complete "as quickly as possible".
Former foreign secretary James Cleverly accused the government of being "weak, weak, weak".
He said: "Labour lied to get into office. Said they'd be whiter than white, said they wouldn't put up taxes, said they'd stand up to the EU, said that they'd be patriotic. All lies!"
'A strategic disaster'
Mr Tugendhat said the Foreign Office had "negotiated against Britain's interest" and it was "disgraceful that these negotiations started under our watch" - in a dig at Mr Cleverly who was foreign secretary when negotiations began in 2022.
Reform UK leader Nigel Farage said "giving up the Chagos Islands is a strategic disaster" and claimed the US "will be furious and Beijing delighted".
"Labour are making the world a more dangerous place," he said.
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