Pope Francis has recognised seven bishops appointed by China as part of a historic accord to improve ties between the Vatican and the communist country.

The issue of who appoints bishops has been at the heart of a dispute since China first broke off diplomatic ties with the Holy See in 1951. China has some 10 million Catholics.

The Vatican said that Pope Francis hoped the deal will allow the wounds of the past to be overcome and bring about full Catholic unity in China. An eighth bishop, who died last year, was also posthumously recognised by the Vatican.