Rival political movements debating the future of New Caledonia announced a deal Saturday morning to create a new state — but one not fully independent from France.

The pro- and anti- independence factions in the French territory concluded talks in Bougival, on the outskirts of Paris, with a compromise that would grant New Caledonia new autonomy — potentially giving the territory a chance to move forward from violent upheavals last year. 

French Prime Minister François Bayrou called it “an agreement of historic significance” in a post on X. He hailed the agreement for a “unique organization” of a new state of New Caledonia inside France’s “national framework” and enshrined in the French constitution. 

Residents of the Pacific archipelago and former French penal colony have long been divided over its future. French descendants want Paris to maintain power, while the indigenous Kanak people seek self-determination. 

In May last year, unrest broke out after the French parliament proposed a change to the electoral role that would weaken the political power of the pro-independence movement. 

Les Nouvelles Calédoniennes reported that the deal — the text of which had not been released at the time of publication — allowed for the creation of a New Caledonian nationality, which would mean islanders could become dual nationals, and for the transfer to New Caledonia of the competence for international relations.

The deal now faces a referendum in New Caledonia and a vote in the French parliament.

In a statement, French loyalist groups noted the deal involved “concessions from all parties.” They said it would create “a New Caledonian nationality inseparable from French nationality.”

The deal also includes commitments from France to assist in economic development, notably in the country’s strategically important nickel sector, the loyalists noted.

French Justice Minister Gérald Darmanin said on X that the deal would give New Caledonia “expanded powers, an unfrozen electorate, and possible international recognition.”

Sonia Backes, the leader of the majority loyalist South Province of New Caledonia, said: “This New Caledonian nationality takes nothing away from us: neither from our belonging to the Republic nor from our French nationality.”