BRUSSELS, June 12 (Xinhua) -- The European Union(EU) on Tuesday hailed a "historic agreement" clinched by Athens and Skopje to settle their decades-long name dispute, which has been a major stumbling block for Skopje's accession to the EU.

EU foreign policy chief Federica Mogherini and Enlargement Commissioner Johannes Hahn said in a joint statement that they "wholeheartedly congratulate Prime Ministers Alexis Tsipras and Zoran Zaev for their determination and leadership in reaching this historic agreement."

They applauded the agreement as it "contributes to the transformation of the entire region of South-East Europe."

"We now look forward to the Council (of the EU)endorsing our recommendation of 17 April to open accession negotiations with the Former Yugoslav Republic of Macedonia(FYROM) in June," they said.

Greek Prime Minister Alexis Tsipras announced on Tuesday that Athens and Skopje have reached a historic agreement on their name row, Greek national broadcaster ERT reported.

Severna Macedonja (Republic of North Macedonia in English) will be the new name of the Former Yugoslav Republic of Macedonia (FYROM) under the agreement, Tsipras said in Athens on Tuesday.

The name dispute started in 1991 when the Former Yugoslav Republic of Macedonia (FYROM) declared independence from Yugoslavia and chose the name Macedonia, which is also the name of a northern Greek province.

Athens expressed concern from the beginning that the use of the same name by the neighboring state could lead to territorial claims.

In recent months, UN-mediated talks to resolve the issue have intensified and both sides have expressed optimism that a deal can be sealed before the EU's June summit which will explore the bloc's further enlargement.