MADRID/LONDON - The European Union (EU) and Britain reached an agreement on the status of the overseas territory of Gibraltar on Wednesday which facilitates border crossings and ends years of political uncertainty.

The status of Gibraltar - an enclave at the southern tip of Spain that has been under British rule since the 18th century - and how to police the border with Spain have been points of contention since Britain voted in 2016 to leave the EU.

Talks have continued without an agreement since Britain officially left the EU in 2020 over the territory's status and border with Spain.

Gibraltar residents can cross using residence cards without needing to have their passports stamped. Spanish citizens can cross using a government ID card.

ALSO READ: Britain joins trans-Pacific pact in biggest post-Brexit trade deal

Passport controls have occasionally been re-established in tit-for-tat disputes, however, causing massive queues for up to 15,000 cross-border workers.

Under Wednesday's agreement, those arriving at Gibraltar airport will show their passports to both Gibraltar and Spanish border officers.

The British Foreign Office said the system would follow a similar model to French police operating in London's St. Pancras station, where the Eurostar train service connecting Britain with mainland Europe runs from.

It added that the agreement would provide a practical solution to avoid the need for what it described as "onerous checks" and long delays at the border.

"We have reached an agreement which protects British sovereignty, supports Gibraltar's economy and allows businesses to plan for the long-term once again," British Foreign Minister David Lammy said.

Spain had urged Britain to close a deal on Gibraltar's post-Brexit status before the start of new EU border controls, which include a biometric entry-check system for non-EU citizens.

READ MORE: Spain urges UK to sign Gibraltar deal before new EU travel checks

"This is about the removal of the last fence in Europe," European Trade Commissioner Maros Sefcovic said.

Sticking points have included what role Spanish officials would have carrying out entry checks to the 29-nation Schengen free travel zone - of which Britain is not a member - at Gibraltar's airport and its ports.

"I'm delighted we have finalised a conclusive political agreement which will bring legal certainty to the people of Gibraltar, its businesses and to those across the region who rely on stability at the frontier," Fabian Picardo, the chief minister of Gibraltar, said.