Morocco's ambassador to Spain has returned to Madrid after Spain gave in to the Moroccan proposals for the political future of Western Sahara, Spanish paper El País and the public broadcaster RTVE reported on Sunday, citing government sources.
Karima Benyaich had been recalled for consultations in May of last year over Spain's attitude to the disputed territory of Western Sahara.
The government in Madrid had been in favour of a referendum on the future of the former Spanish colony, which is situated to the south of Morocco and has been largely occupied by Morocco since Spain withdrew in 1975.
The territory has been disputed for decades, with the region's Polisario Front campaigning for the independence and right to self determination of Western Sahara.
On Friday, Spain had given its support to Moroccan proposals to turn the area into an autonomous province under Moroccan sovereignty.
Algeria, currently in a political spat with neighbouring Morocco, reacted by recalling its own ambassador to Spain for consultations, calling the "abrupt U-turn" a "betrayal" of the Saharawi people, who are native to Western Sahara.
