Clinton Rogers reports on the arrests

Another man has also been arrested in connection with the crime on the island of Eleuthera.

American Lori Fogelman was killed on the same island chain

Carol Leach, 37, who had been living on the island, was battered to death as she slept at her villa home on 22 August 1997.

A Foreign Office spokesman confirmed on Tuesday that the men - a Canadian and a local man - had been arrested and were being held in custody in Nassau.

He said one of the men was charged with murder, while the other was being held by police.

British holidaymaker Joanne Clarke also died in attack

The divorcee, from Bath, Somerset, who taught in the village of Rock Sound, was killed with a single blow to the head.

Her murder sent shockwaves through the popular holiday destination.

Fears grew that a serial killer could be on the loose when two other women - Joanne Clarke, 24, from Oxfordshire and American Lori Fogleman - were also murdered on the island chain.