Peter Caruana undermined British efforts for a deal with Spain

Mr Caruana's Social Democratic Party won 51% of the vote in Thursday's general election, 12% more than its main rival, the Socialist Labour Party.

Both parties back a negotiated solution to end Gibraltar's colonial status, without passing sovereignty to Spain.

A referendum called by Mr Caruana last year rejected a proposal for shared UK-Spanish sovereignty over the Rock.

Mr Caruana's winning margin was slightly lower than in 2000, which he said was connected with his neglect of domestic issues as he focused on the sovereignty debate.

"Our record on international affairs has been recognised by the electorate, and I now pledge to focus on domestic issues," he said in his acceptance speech.

Turnout for the poll was lower than expected, at about 75%.

Spain ceded Gibraltar to Britain in the early 18th Century, but has been trying to get it back for many years.