The U.K. says it has reached a "historic" deal to cede the Chagos Archipelago in the Indian Ocean to the Republic of Mauritius, thus surrendering the final colony of Britain's once-sprawling African empire.

The U.K. has agreed to hand sovereignty of the long-contested Chagos Islands, an archipelago of more than 60 islands in the Indian Ocean, to Mauritius, in a deal to secure the future of a strategically important U.

Britain said on Thursday it would cede sovereignty of the Chagos Islands to Mauritius in a deal it said secured the future of the UK-U.S. Diego Garcia military base, and which could also pave the way for people displaced decades ago to return home.

The British government made the deal to return all the Chagos Islands, except for Diego Garcia, which holds a U.K.-U.S. Navy base.

Britain said on Thursday it would give up sovereignty of the Chagos Islands to Mauritius in a deal that would allow people displaced decades ago to return home while London retains use of the UK-U.S.