'Britain's longstanding relationship with Spain has been built over centuries on the deep and solid foundations of our shared history, values and interests, ' the Prime Minister said.
Addressing the House of Lords, King Felipe VI of Spain said: 'During our rich and fruitful history, there have also been estrangements, rivalries and disputes.
Through necessary dialogue and efforts, our two governments will be able to work out arrangements that are acceptable to all involved'.
In their statement, Govt explain that such comment places the focus on bilateral dialogue between London and Madrid as the way forward to address Spain's differences with the United Kingdom over the Decolonisation of Gibraltar.
In a stinging rebuke, he described the King's comments "undemocratic" adding Gibraltar "will remain 100% British".
Tappa a Barguil, Aru sempre in giallo
E' la frazione più breve, ma dominata dalle salite.Sul primo GPM passa De Marchi davanti a Barguil, molto attivi Contador e Landa. Sei secondi, in una corsa a tappe lunga 3.540 chilometri, che dura 23 giorni, sono quasi un battito di ciglia.
Then Felipe will meet Theresa May at 10 Downing Street.
THE QUEEN appears to have waded into the ongoing row over Gibraltar at the King of Spain's state banquet - saying the two countries did not always see "eye to eye".
Felipe and Letizia will formally say goodbye to the Queen and Prince Philip at Buckingham Palace.
Today, Buckingham Palace welcomed King Felipe and Queen Letizia of Spain who will be staying at the prestigious residence until Friday.
Queen Elizabeth and Prince Philip made the formal welcome on Wednesday, which included a royal salute from the Guard of Honor.
Prior to Felipe's speech, the topic was broached during a question-and-answer session in the House of Commons, where a conservative lawmaker asked whether Prime Minister Theresa May meant to reaffirm Britain's control of Gibraltar during talks with the Spanish monarch. He also received the customary present - a silver framed pair of photographs of his royal hosts.