REPUBLIKA.CO.ID, NICOSIA -- Greek Cypriot leader Nicos Anastasiades and his Turkish Cypriot counterpart Dervis Eroglu Tuesday pledged to work towards clinching agreement on ending the island's division "as soon as possible", a joint statement said.

The statement, issued after the leaders relaunched a peace drive after an almost two-year break, said the status quo in Cyprus was "unacceptable" and affirmed a settlement would have a "positive impact" on the entire region.

"The leaders expressed their determination to resume structured negotiations in a results-oriented manner," said the statement.

"The leaders will aim to reach a settlement as soon as possible and hold separate simultaneous referenda (in both communities) thereafter," it added.

Anastasiades and Eroglu also agreed a settlement would be based on a "bi-communal, bi-zonal federation with political equality ... with constituent Greek and Turkish Cypriot states".

The joint declaration was finalised last week after protracted haggling over the text delayed a relaunch of peace talks originally earmarked for November.

Turkish Cypriots suspended the last round of talks in mid-2012 when Anastasiades's internationally-recognised Republic of Cyprus assumed the European Union's rotating presidency.

Cyprus has been divided since Turkish troops invaded and occupied its northern third in 1974 in response to an Athens-engineered coup aimed at uniting it with Greece.

A breakaway state which Turkish Cypriot leaders declared in 1983 is recognised only by Ankara.

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