The European Union's foreign policy chief, Josep Borrell, announced that Serbia and Kosovo have reached an agreement that ends the dispute over the freedom of movement of their citizens across their borders.

"We have an agreement.. Under the dialogue brokered by the European Union, Serbia agreed to cancel entry and exit documents (issued by it) to Kosovo ID card holders," Borrell wrote on Twitter on Saturday, adding that Kosovo had agreed to do the same.

Borrell stressed that "Kosovo Serbs, along with other citizens, will be able to move freely between Kosovo and Serbia using their identity cards."

Borrell's announcement came after the failure of a round of negotiations in the Belgian capital (Brussels) that took place between the two sides under European auspices last week, and Borrell said at the time, "Unfortunately, we have not yet reached an agreement, but it is not the end. Discussions will resume in the coming days."

Tensions erupted between Serbia and Kosovo this month when Pristina said it would require Serbs living in the north, who are supported by Belgrade and do not recognize Kosovo's institutions, to start using their car license plates.

The situation calmed after Kosovo Prime Minister Albin Kurti, under pressure from the United States and the European Union, agreed to delay new rules on license plates until September 1, while NATO peacekeepers supervised the removal of barriers. The roads built by the Serbs.

Kosovo, which is mostly Albanians, separated from Serbia in 1999, and declared its independence from it in 2008, but Belgrade still considers it part of its territory, and supports the Serb minority in it.