The agreement, which was reached after years of negotiations, sees the UK handing over the Chagos Islands to Mauritius.
This includes the tropical atoll of Diego Garcia, which is used by the US government as a military base for its Navy ships and long-range bombers, reports pressorg24
The announcement, made in a joint statement by the prime ministers of Britain and Mauritius on Thursday, ends a decade of often tense negotiations between the two countries over the islands.
The US and UK base will remain on Diego Garcia – a key factor in allowing the agreement to move forward at a time of growing geopolitical rivalry in the region between Western countries, India and China.
“Under the terms of this treaty, the United Kingdom will agree that Mauritius has sovereignty over the Chagos Archipelago, including Diego Garcia,” British Prime Minister Keir Starmer and Mauritian Prime Minister Pravind Jugnauth said in a statement.
“At the same time, both our countries are committed to the need… to ensure the long-term, safe and effective operation of the existing base at Diego Garcia, which plays a vital role in regional and global security,” the statement said.
The treaty will also “redress the mistakes of the past and demonstrate the commitment of both parties to supporting the well-being of the people of Chagoss,” the statement said.
Mauritius will now be able to launch a resettlement program on the Chagos Islands, apart from the Diego Garcia military base.
The agreement is still subject to final contract negotiations, but both sides have vowed to complete it as quickly as possible.