Madrid, Spain ? The State Department said Saturday that Spain and Morocco had resolved their diplomatic-military impasse over a tiny Mediterranean island that over the past two weeks brought their relations to their lowest level in years. Spokesmen for Spain’s foreign ministry and prime minister’s office declined immediate comment.

“The United States welcomes the understanding reached by Morocco and Spain over the island, following consultations by the United States with each side,” Secretary of State Colin Powell said in a statement.

“In accordance with this understanding, the two sides have agreed to restore the situation regarding the island that existed prior to July 2002.”

On July 11, Morocco unexpectedly sent a dozen gendarmes to the island, ostensibly to counter narcotics smuggling and illegal immigration.

Spanish commandos removed them peacefully six days later, and left several dozen troops of its own. Its warships have patrolled the island ever since.

Spain also stationed troops a few days ago on another usually uninhabited island it claims, Isla de Lobos, in the Atlantic Ocean off Morocco’s west coast.

Spanish troops began to withdraw Saturday.