Cambodian officials and Russians representing the firm signed an "agreement in principle" during a ceremony presided over by Prime Minister Hun Sen in Siem Reap province late Monday, said Sri Thamrongk, an adviser to the prime minister.

Commerce Minister Cham Prasidh, who signed on the government's behalf, confirmed the signing of the agreement but declined to talk about it in detail.

The agreement will allow Koh Pos Investment Co. Ltd. to develop and manage Koh Pos, or Snake Island, for 99 years, said Khiem Kolneath, an assistant to Alexander Trofimov, the company's chairman.

The island is located about 800 meters (a half-mile) off a popular beach site in Sihanoukville, about 185 kilometers (115 miles) southwest of the capital Phnom Penh.

Trofimov was not available for comment Tuesday.

Khiem Kolneath said the company has six months to present the government with a development master plan, which will include hotel, recreation center and construction of a bridge linking the beach with the island.

He added that details of the master plan will be still subject to the government's review and approval.

A Malaysian company originally secured the right to develop the island in mid-1990s, but the Cambodian government recently canceled its contract with the firm after it failed to carry out its commitment.

Tourism is a major industry generating much needed hard currency for the cashed-strapped Southeast Asian government.