The tiny Pacific nation of Palau has reported its first cases of the coronavirus, losing its prized status as one of the world's few Covid-free countries, reports AFP.

Two travellers, who tested positive after arriving from Guam, have been placed in quarantine along with their known contacts.

“We urge everyone to remain calm,” the Ministry of Health said in a statement after deciding against imposing lockdown measures.

Until Saturday, Palau was just one of 14 countries in the world that had recorded no virus cases at all, according to the World Health Organisation.