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An island in Montenegro will reopen to tourists this summer after a five-year dispute over beach access.

Sveti Stefan, an island on the Budva Riviera, is set to welcome back guests from July following a settlement between the Montenegro government and island leaseholders.

The popular island was forced to close in 2021 amid a decade-long legal battle over beach access for locals.

According to Aman, a luxury hotel operator on the island, Sveti Stefan island will open for the summer season from 1 July.

Under the settlement, locals will have free access to two of the three beaches near the resort, with one for exclusive use by hotel guests, reported Euronews.

Residents will have access to Sveti Stefan Beach and King’s Beach, while Queen’s Beach will be private for tourists staying at Aman.

Previously, surrounding beaches, including King’s Beach and Queen’s Beach, were accessible to Aman guests only.

The fortified 15th-century island on Montenegro’s Adriatic coast is connected to the mainland by a narrow tombolo of sand.

From 22 May, guests will also be able to stay at the hotel’s Villa Miločer residence on the mainland “year-round”.

Rooms at the former summer villa of Queen Marija Karađorđević start from £1,323 a night in May.

Prime minister of Montenegro, Milojko Spacjić, said on X: “The city-hotel Sveti Stefan is reopening its doors this summer! We have preserved the state’s interest and made an important step forward for Montenegrin tourism.”

He added that the state will receive a 10 per cent share of profits, with no additional construction work permitted in Miločer Park opposite Sveti Stefan.

Read more: Montenegro tourism boost after securing 350 million euros for transport upgrade