Greek Cypriots have begun demolishing a key section of the barrier dividing the island's capital city, Nicosia.

The Green Line has separated the island's Greeks from the Turkish population since 1974 when Turkish troops occupied the North.

The work began under cover of darkness and had not been publicised in advance.

However, it is believed to be just the latest move in an ongoing issue over crossing points in the city which began with the recent demolition of a bridge.

Ledra Street, the commercial thoroughfare where the demolition is taking place, was cordoned off to allow heavy equipment and demolition crews to move into position.

According to AFP news agency crowds gathered to watch the action, applauding when work on tearing down the barrier began.

"The demolition work is expected to be completed before sunrise on Friday," a police spokesman told the agency.

In December 2006 Turkish Cypriots demolished a controversial footbridge over Ledra Street which was built in 2005.

The bridge had angered Greek Cypriots, who said it encroached into the UN buffer zone separating the two sides.

At the time Turkish Cypriot officials said they expected Greek Cypriots to respond to the gesture by dismantling a defensive wall on their end of Ledra Street.

It is this wall which is now being demolished.

"This is a show of goodwill on our side to contribute positively to opening Ledra Street," government spokesman Christodoulos Pashardes told state television.

Cyprus was partitioned after a Turkish invasion in 1974, following a Greek-inspired coup.