The governments of Britain and Mauritius signed a deal to settle the future of the Chagos Islands, the contested archipelago in the middle of the Indian Ocean, after overcoming last-minute legal hurdles Thursday.

LONDON (Reuters) -Britain is set to sign a deal ceding sovereignty of the Chagos Islands to Mauritius while also securing the future of the UK-U.S. Diego Garcia military base in the Indian Ocean, media reported on Thursday.

The UK has signed a £3.4bn ($4.6bn) deal to hand over sovereignty of the Chagos Islands to Mauritius, while retaining control of a UK-US military base on Diego Garcia - the largest of the islands. Prime Minister Sir Keir Starmer says the 99-year agreement to lease back Diego Garcia will cost the UK £101m a year,