Gibraltar will not be a problem in Brexit deal: Spain on sidelines of EU summit

The status of the British overseas territory of Gibraltar, a small isthmus on Spain's southern coast, after Britain leaves the European Union has been agreed with Britain, Spain's prime minister said on Thursday.

However, Spain and Britain were still negotiating in separate bilateral talks regarding Gibraltar, focusing on matters such as environmental issues, tax affairs and tobacco trade, Prime Minister Pedro Sanchez said.

"Gibraltar will no longer be a problem in arriving at a Brexit deal," he said at a news conference in Brussels on the sidelines of an EU summit.

(With inputs from agencies.)