Yale University has agreed to return to Peru thousands of Inca relics that were excavated at Machu Picchu from 1911-15 by a history professor, Hiram Bingham.
Peru demanded the artefacts back last year, saying it agreed to their removal on condition they would be returned.
More than 4,000 pieces, including mummies, ceramics and bones were taken to the US university.
Under the agreement Yale and Peru will co-sponsor the first travelling expedition of the collection.
Yale will also act as an adviser for a new museum in the Andean city of Cuzco, close to Machu Picchu, where the exhibition will be installed after its tour.
The museum's opening is planned to coincide with the centennial celebration of Bingham's rediscovery of Machu Picchu in 1911.
During three trips to Machu Picchu, Bingham dug up thousands of objects, including silver statues, jewellery, musical instruments and human bones.
The agreement between Peru and the Connecticut-based university came after months of negotiations.
Initial talks broke down last year under the administration of former Peruvian President Alejandro Toledo and Peru threatened to take its case before a US court.
Yale had offered to divide the items up but it now acknowledges Peru's title to all the excavated objects.
This is excellent news! The BBC story has good photos of some Incan treasures and a timeline of Yale University's involvement in Machu Picchu.
Our own photos of Macchu Pichu - a small sample of the hundreds we took when we visited the site in 2006 - are here.
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