Riyadh: Oil powerhouse Saudi Arabia and its tiny Gulf neighbour Qatar have reached a settlement to their years-long dispute following a summit, a Kuwaiti newspaper reported on Monday.

Under the deal, Riyadh will send its envoy back to Doha by the end of the year and will allow Qatar-based Al Jazeera television to open an office in the Saudi capital, Al Jarida said, quoting Arab and Qatari sources.

In return, Qatar has agreed to a Saudi demand that Al Jazeera stop “undermining” and “campaigning” against the desert kingdom, the daily quoted the sources as saying. Saudi Arabia recalled its ambassador from Doha in 2002 when Al Jazeera aired a debate in which participants strongly criticised the Saudi royal family, and the two neighbours often snipe at each other through their respective media. But in a bid to ease tensions, Qatari Emir Sheikh Hamad bin Khalifa Al Thani held talks with Saudi King Abdullah in the Red Sea city of Jeddah on Saturday during a brief visit.