GIBRALTAR — Spain and Britain signed a historic deal over the disputed territory of Gibraltar yesterday, resolving issues that have colored relations between the two countries for decades.

The first ever ministerial meeting of the so-called Tripartite Forum was hailed as a success by all parties, with agreements being made on contentious issues that should provide an economic boon to the Rock and significantly improve the lives of its inhabitants.

Britain’s minister for Europe, Geoff Hoon, the Spanish foreign minister, Angel Moratinos, and Gibraltar’s chief minister, Peter Caruana, met in a 14th-century palace in the Spanish city of Cordoba to forge a historic deal that has been almost two years in the making.

It was undoubtedly the most cordial meeting in the troubled history of the Rock and broke firmly with the past, allowing Gibraltar to take a seat at the negotiating table for the first time.

Under the agreement, Gibraltar will have an international airport, and flights will be able to cross into Spanish airspace, something that has been restricted until now as part of the spat over sovereignty of the narrow peninsula.

In what will be seen as a symbolic coup for Spain, the Spanish flag will, for the first time in over 50 years, be flown on the British territory.

Under the deal, Spain will open a branch of their Cervantes Institute — the Spanish equivalent of the British Council — the first and only public building to be opened since the Spanish dictator Francisco Franco closed the Spanish consulate in 1954 to protest against a visit by the queen.

Mr. Hoon said the deal solved “irritating issues” that had ” frustrated an otherwise good relationship” between the two countries. He applauded the efforts of both Mr. Moratinos and Prime Minister Zapatero for their “great courage and insight” in tackling the issues.

Mr. Caruana said the agreement would benefit each and every Gibraltarian and rebutted criticism that it eased the path for Spain to claim sovereignty.

“If anything, we are in a stronger position because Spain has finally recognized the fact that we have self-determination and invited us to the table,” he told the Daily Telegraph.

But he said the door was open for further talks over the issue.

“The Tripartite Forum will continue, and there is no set agenda. If Spain wants to bring up the old issue of sovereignty, it can, but I don’t think that is on the cards. We shall see.”

The ministers said they would meet again in a few months to check on progress of yesterday’s agreements and start discussing other issues like the environment, education, and trade.

“We are still a long way short of cooperating as European Union neighbors do,” said Mr. Caruana. “There is still a huge amount of work to be done.”