European Union ambassadors agreed on Monday on how to respond to Turkey's refusal to recognise new member Cyprus, removing a key obstacle ahead of the start of accession talks with Ankara, a diplomat said according to Reuters. "The deal is done, the text of the declaration has been agreed upon," said a diplomat from Britain, which holds the EU's rotating presidency. Ambassadors from 25 EU nations were debating a declaration that will accompany a negotiating mandate to be presented to Turkey at the start of its accession talks on Oct. 3. Turkey refuses to recognise Cyprus's Greek Cypriot government, which represents the whole of the island in the EU. Ankara supports a Turkish Cypriot breakaway state in the north of the Mediterranean island. Diplomats said Cyprus had backed away from demands for tough language for Ankara to make progress in recognising the Cypriot government -- something which was not a precondition for Turkey to start accession talks. Britain and some other countries do not want the declaration to be too tough on Turkey for fear it could hurt the talks. --more 2335 Local Time 2035 GMT