Spanish officials have signalled a change of policy on Gibraltar by setting aside a demand for sovereignty, instead focusing on improving relations with the population.

The move comes ahead of a visit to Madrid by foreign secretary Jack Straw.

"We realise the issue of sovereignty is stuck in a dead end at the moment," a Spanish foreign ministry official told journalists yesterday.

"What we need to find now are different ways of moving forward.

"But we are going to put the focus first and foremost on cooperation and not condition it to advances in the debate on sovereignty."