Leaders of Cyprus's Greek and Turkish communities met on Friday in a new effort to break a deadlock in reunification talks that threatens to derail Turkey's bid to join the European Union.

Greek Cypriot leader Demetris Christofias and Turkish Cypriot leader Mehmet Ali Talat shook hands at the start of their meeting in the U.N.-controlled zone between the two sectors of the divided capital Nicosia.

In their first encounter since Christofias became Cyprus's president last month, they were exploring the possibility of a new round of talks, stalled since 2004 when Greek Cypriots voted against a U.N. reunification plan.

"We certainly hope that (this meeting) will give a new start," said U.N. spokesman Jose Diaz. "I hope there will be an announcement of the opening of Ledra Street."

The two leaders hope to be able to announce the opening of Ledra, a thoroughfare blocked off for nearly half a century, splitting Nicosia into Greek and Turkish Cypriot sectors -- the most potent symbol of the island's division.

Analysts say this could be the last chance to end Cyprus's decades-old ethnic division, and diplomats fear an enduring

stalemate would entrench partition, harming Turkey's EU entry hopes and relations with NATO partner Greece.

"The gap is not so big, and it will not be difficult for them to build bridges for an agreement for the new process," said British High Commissioner (ambassador) Peter Millet. "This is the message the international community is waiting for."

Former president Tassos Papadopoulos, defeated last month, made little progress towards reunification in talks with Talat. Christofias has maintained closer ties with Turkish Cypriots and, like Talat, has a background in leftist political activism.

Greek and Turkish Cypriots have lived separately since a Turkish invasion in 1974 in response to a brief Greek-inspired coup. Peace efforts collapsed in 2004 when Greek Cypriots rejected a U.N. reunification blueprint accepted by Turkish Cypriots, and soon afterwards joined the European Union alone.

The Greek Cypriots in the south represent Cyprus in the EU and have the right to prevent Turkey from joining the bloc.

An accord brokered by the United Nations in 2006 calling for an incremental approach to peace-building stalled over the agenda.

"As the Turkish Cypriot side we seek a start as soon as possible to fully fledged negotiations," said Asim Akansoy, an under-secretary to Talat.

Christofias and his aides have warned against high expectations of a swift resolution to a problem which has defied mediation for decades.

"It's very clear that if there is no outcome (from Friday's meeting) we will try again, and again. We don't want to talk about failure," said Stefanos Stefanou, spokesman in Christofias's government.