Swedes partying at the Stockholm Pride parade in 2016 (Erik Nylander/AFP/Getty)

Transgender people will no longer be classified as “mentally ill” in Sweden.

The National Board of Health and Welfare announced the decision following the World Health Organisations’ decision to scrap trans identity as a mental health issues.

The head of the organisation, Kristina Bränd Persson called the chance an “important symbolic value”.

“This is a completely reasonable change,” she added. “Many divisions and categories are obsolete. For us, the decision is uncontroversial. We tend to follow the changes the WHO makes.”

The decision has been welcomed by trans activists in the country who called it “long overdue”.

“At f***ing bloody last! We are not ill, most of all mentally,” said Leo Ringqvist.

“Wake me! Is it 2017 or 1817?” said Ewa-Maria Åström.

Before the change, trans folk would be automatically classified as having “gender dysphoria”.

Sweden previously made sterilisation for transgender people compulsory for the state recognising their gender.

Until 2013, the law specified that those wishing to change gender had to “lack the ability to procreate”.

This meant that hundreds of transgender people were forced to undergo surgery to prevent them from ever having children.

More than 160 victims of the policy brought a claim against the government over the practice – and after a long political battle lasting years, the Swedish government confirmed it would settle the case and pay out compensation.

The government has since paid out compensation to those who were “forcibly sterilised”.

It is hoped that this law will come into force in July 2018, and that approximately 300,000 SEK (£25,000) per person will be paid out.