Yemeni Defence Minister Mohammad Diefallah Mohammad raised his country's flag over the island of Greater Hanish as Yemeni army and navy troops took up positions on it.

At the same time, Eritrean troops departed on board a helicopter and a naval vessel.

The two countries fought a battle over the three main islands of the Hanish archipelago three years ago, before agreeing to international arbitration.

The Permanent Court of Arbitration ruled that the Hanish groups of islands, and several smaller islands in the region belonged partly to Yemen and partly to Eritrea.

The archipelago is close to the southern entrance of the Red Sea, in the middle of strategic shipping lanes.

'Bridge of friendship'

Diplomats in the region have said that the conflict was triggered by competition over the right to prospect oil and develop tourist projects on the islands.

The Hanish islands used to belong to the Ottoman Empire and their ownership had never before been established by international convention.

The court decided Yemen owned the Hanish islands but Eritrean fishermen should be allowed fishing rights in waters awarded to Yemen.

Yemeni Foreign Minister Abdel Kader Bajammal said: "The Hanish islands will not be used under Yemeni sovereignty for military purposes.

"They will be a bridge of friendship between all the countries which border the Red Sea."