The famous fortified island on Montenegro’s Adriatic coast will welcome visitors again from 1 July following a settlement between the Montenegro government and the island’s leaseholders.

The luxury resort, operated by Aman Resorts, closed in 2021 amid a long-running legal battle over whether local residents should be allowed access to nearby beaches.

Under the new agreement, locals will be able to use two of the three beaches surrounding the island resort.

Residents will have free access to Sveti Stefan Beach and King’s Beach, while Queen’s Beach will remain exclusively for hotel guests staying at Aman.

Previously, the beaches surrounding the resort, including King’s Beach and Queen’s Beach, were reserved solely for Aman guests.

The 15th-century island, which is linked to the mainland by a narrow strip of sand, has long been one of Montenegro’s best-known tourist destinations and has attracted celebrities and luxury travellers from around the world.

As part of the reopening plans, visitors will also be able to stay at the hotel’s Villa Miločer residence on the mainland from 22 May.

The former summer residence of Queen Marija Karađorđević will now operate year-round, with room rates starting from £1,323 per night in May.

Milojko Spajić welcomed the agreement and confirmed the resort’s reopening on social media.

He said: "The city-hotel Sveti Stefan is reopening its doors this summer! We have preserved the state's interest and made an important step forward for Montenegrin tourism."

Spajić also revealed the Montenegrin state would receive a 10 per cent share of the resort’s profits under the new deal.

He added that no additional construction work would be allowed in Miločer Park opposite the island.

The reopening is expected to provide a boost to Montenegro’s tourism industry after years of uncertainty surrounding one of the country’s most recognisable luxury destinations.