Israel and the United Arab Emirates have reached an agreement to normalise relations, US President Donald Trump has announced.

A joint statement by Mr Trump, Israeli PM Benjamin Netanyahu and Abu Dhabi Crown Prince Mohammed bin Zayed said they hoped the "historic breakthrough will advance peace in the Middle East."

As a result, they added, Israel would suspend its plans to annex large parts of the occupied West Bank.

Until now Israel has had no diplomatic relations with Gulf Arab countries

However, shared concerns over Iran's regional influence have led to an unofficial contacts between them.

In response to President Trump's announcement, Mr Netanyahu tweeted in Hebrew: "Historic day".

The UAE's ambassador to the US, Yousef Al Otaiba, said in a statement that it was "a win for diplomacy and for the region".

"It is a significant advance in Arab-Israeli relations that lowers tensions and creates new energy for positive change," he added.

The agreement marks only the third Israel-Arab peace deal since Israel's declaration of independence in 1948. Egypt signed a deal in 1979, and Jordan in 1994.