Talks to resolve Europe’s longest-running frozen conflict will enter a “critical phase” this week, as the leaders of Turkish and Greek-controlled Cyprus engage in what diplomats are calling a “final push” to reach a historic deal to reunify the island.

The leaders of both communities, which have been locked in mutual enmity since the island was divided north and south by the Turkish invasion of 1974, will start a fresh round of intensive talks on Tuesday that diplomats hope can finally unlock one of Europe’s most vexed political questions.

“There is a greater sense of urgency than I can ever remember,” an EU diplomatic source close to the talks told The Sunday Telegraph, “there is a real sense that the time for a deal is now, and the window for a deal will start to close after the end of this year.”

Optimism that the two sides can reach an agreement have spiked this summer after it emerged that talks in June and July had resolved many of the disputes over how to compensate for billions of pounds worth of property left behind by both sides when the island divided.