WASHINGTON, July 20: US Secretary of State Colin Powell said on Saturday that Spain and Morocco had reached an “understanding” in a dispute over a tiny Mediterranean island, following intense US mediation.

Under the US-brokered deal, Spain and Morocco would agree to remove from the island any “outposts, flags and or symbols of sovereignty”, a pledge that would be tantamount to a return to the status quo before the dispute.

The two countries would then follow up with ministerial-level talks to work out a solution to the dispute over the island.

“The United States welcomes the understanding reached by Morocco and Spain over the island,” Powell said in a brief statement.

“In accordance with this understanding, the two sides have agreed to restore the situation regarding the island that existed prior to July 2002,” he said.—AFP