An 87-year-old woman whose eviction triggered widespread protests in Spain will be allowed to return to the Madrid home where she has lived for more than seven decades.

Madrid City Council, property company Urbagestion and representatives of Maricarmen reached an agreement on Tuesday following four-and-a-half hours of negotiations.

The pensioner will receive a new eight-year tenancy agreement, with her monthly rent capped at 30% of her net income, reaching approximately €500.

Maricarmen was told the news while recovering at Madrid’s Gregorio Marañon Hospital, where she was admitted following her eviction last Wednesday.

Her cousin Vicente delivered the news in person. Beatriz Duro, the pensioner’s lawyer, said she was ‘very happy’ and would return to the property as soon as she is discharged from hospital.

All her possessions remain inside the flat.

The agreement was brokered through the Madrid municipal housing company EMVS and complies with Spain’s Urban Leasing Law.

‘Maricarmen is going to pay approximately what she had been paying,’ Duro said, describing the outcome as a ‘historic event’ brought about by sustained public pressure.

The Sindicato de Inquilinas tenants’ union also participated in the negotiations after Maricarmen and her family insisted that it be represented.

‘We have finally reached a very satisfactory agreement, meaning she will be able to return directly to her home,’ union spokeswoman Carolina Vilariño said.

The arrangement also reportedly includes legal assistance and insurance guarantees connected to the tenancy.

An earlier proposal to include the property in Madrid’s Reviva affordable-rental programme was rejected by the city council because it did not meet the programme’s legal requirements.

Officials instead negotiated the agreement through the EMVS rental mediation service.