The Chinese government said it has agreed to extend a provisional agreement with the Vatican on the appointment of Catholic bishops in China for four more years.
The 2018 agreement, extended twice previously, was an attempt under Pope Francis to bridge long-standing differences over control of the church in China.
There have been disagreements since, but they have so far not derailed the fragile rapprochement.
Chinese Foreign Ministry spokesperson Lin Jian, who confirmed the extension, said: “The two sides will maintain contact and dialogue following a constructive spirit and continue to advance the improvement of China-Vatican relations.”
Francis has reached out to China during trips to Asia both this year and last year, repeating his desire to visit the country on a flight home from Singapore last month.
The Vatican’s relations with China were severed more than seven decades ago when the Communist Party came to power.
The country’s estimated 12 million Catholics were divided into a state-recognised church and an underground one that stayed loyal to Rome.
Relations were stymied over China’s insistence on its exclusive right to name bishops as a matter of national sovereignty, while the Vatican insisted the Pope has the right to name the successors of the original Apostles.
The 2018 agreement sought to find a middle ground, although Rome has acknowledged it was a bad deal and the only one it could get.
The Holy See’s outreach to China under Francis has drawn criticism, especially from American conservatives who have accused the Vatican of selling out the faithful who have been forced underground.