Greece and Cyprus have signed a memorandum of understanding (MoU) to press ahead with a subsea electric cable linking continental Europe to the East Mediterranean, the energy ministries of the two countries said on Saturday.

Cyprus has approved a massive undersea electricity cable project to link its grid with Greece's. On Tuesday, the energy minister announced the project aims to cut electricity bills and end energy isolation.

Cyprus approved the electric cable link with Greece in a multi-billion project that would also link Europe's grid to Israel.

Cyprus reaffirmed its commitment to a planned electric transmission cable to Greece but said on Thursday that technical and financial details needed to be ironed out before it could sink more funds into the project.

Once completed, the Great Sea Interconnector will be the largest and deepest high voltage direct current interconnector in the world.