US President Barack Obama said on Wednesday a "new chapter" has been opened in Washington's ties with Cuba, saying it is time to end an "outdated approach" that has failed to move relations forward.

"Through these changes, we intend to create more opportunities for the American and Cuban people and begin a new chapter," Obama said.

Obama said the two countries have agreed to reestablish diplomatic relations and open economic and travel ties, marking the most significant shift in Washington's policy toward the communist island in decades.