UN Secretary-General Kofi Annan handed Greek, Turkish and Cypriot officials his final plan for the reunification of Cyprus, stressing that “the time for decision and action has arrived”.

Negotiators failed tonight in their attempts to agree Cyprus reunification, said a Turkish official.

Hopes of a deal between the leaders of Greece, Turkey and divided Cyprus by a midnight deadline faded today as diplomats expressed pessimism and the EU ruled out agreeing to one of the major Turkish demands.

Frenzied talks on bringing peace to war-divided Cyprus reached their most critical phase today as UN Secretary-General Kofi Annan revealed his latest - and likely final – reunification plan.