The British Ambassador to Spain Hugh Elliott. | Majorca Daily Bulletin reporter

The British Ambassador to Spain, Hugh Elliott, today gave an update on the situation regarding UK residents in Spain and their driving licences.

For those residents who failed to meet the Spanish deadline to exchange their licences for a Spanish one, they still cannot drive on their UK licence - this does not apply to holidaymakers hiring a car.

However, the ambassador said that while he is all too aware of the frustration and stress the situation is causing many British residents, talks are ongoing - he said it is top of the list of issues at the embassy in Madrid.

Elliott also said that, while he cannot give a running account of developments, talks are very much alive and that a deal is close to being reached.

The deal appears to be a six-month grace period during which time British residents will be able to exchange their licence for a Spanish one.

He stressed that we are talking weeks not months and that the embassy and London are doing all they can to reach a quick and satisfactory solution. Progress is being made to get everyone back on the road, said the ambassador.

As it seems unlikely that Spain will agree to UK driving licences being valid again for British residents, it will be a case of exchange or take a Spanish driving test.