President Glafcos Clerides said: "I reached the decison not to install the missiles on Cyprus and I agreed to negotiate with the Russian government on the possibility of installing them on Crete."

President Clerides had flown from Athens earlier in the day where he had spoken to the Greek prime minister but no statement had been forthcoming.

Mr Clerides said he had taken the responsibility of the decision himself because there had been no unanimity among Greek-Cypriot politicians in the National Council.

Cyprus's internationally recognized Greek-Cypriot government had come under enormous international pressure not to deploy the S-300 missiles it ordered from Russia early last year.

Turkey, which occupied the north of the island from 1974 and now supports the breakaway Turkish Republic of Northern Cyprus, had threatened military action if the missiles were installed.

The BBC Correspondent in Cyprus, Chris Drake, said Greek Cypriots would have mixed feelings at the decision: relief at the reduction in tension and a feeling of humiliation and defeat.

A defence pact exists between Cyprus and Greece. Fears of a fresh conflict between Greece and Turkey have prompted an international effort, led by the United States and United Kingdom to halt the deployment of the nuclear missiles.

Negotiations will now take place to install the weapons on Crete, from where Greek air force planes would take off to defend Cyprus.

Drawing international attention

Our correspondent says the aim of ordering the missile system two years ago was to goad the international community into taking dynamic action to end the division of the island.

Instead, the missiles themselves, rather than the problem of a divided island, became the main focus of international mediation.

Promises of action by the international community have resembled routine annual declarations rather than anything providing cause for optimism.

The proposed deployment succeeded in drawing world attention, but now the Turkish Cypriots and their staunch mainland backers in Ankara have become progressively more demanding.

Prior to the missile deal talks were held on an inter-communal basis. But now the Turkish Cypriot leader, Rauf Denktash, insists on full recognition as a separate state.