New Caledonia and France have reached an agreement: the state of New Caledonia will be created

France and its overseas territory of New Caledonia have announced a historic agreement: the territory will remain part of France, but a new state entity will be declared.

According to France 24, after 10 days of negotiations, the parties have agreed to create the state of New Caledonia. The 13-page document states that residents will be given the option of maintaining French citizenship or combining it with a new status as New Caledonian citizens.

Under the terms of the agreement, New Caledonia, where a wave of unrest by separatist movements erupted last year, will remain a French overseas territory, but will receive the status of a new state.

French President Emmanuel Macron also confirmed the signing of the agreement.