WASHINGTON — President Barack Obama today declared the end of America's “outdated approach” to Cuba, announcing the re-establishment of diplomatic relations as well as economic and travel ties with the communist island.

This is a historic shift in U.S. policy that aims to bring an end to a half-century of Cold War enmity.

“Isolation has not worked,” Obama said in remarks from the White House. “It's time for a new approach.”

As Obama spoke, Cuban President Raul Castro was addressing his own nation from Havana. Obama and Castro spoke by phone for more than 45 minutes Tuesday, the first substantive presidential-level discussion between the U.S. and Cuba since 1961.

Today's announcement followed more than a year of secret talks between the U.S. and Cuba. The re-establishment of diplomatic ties was accompanied by Cuba's release of American Alan Gross and the swap of a U.S. spy held in Cuba for three Cubans jailed in Florida.

Obama says the U.S. spy Cuba is releasing is one of the most important intelligence agents the U.S. has ever had in Cuba.

Obama says the man's sacrifice is known only to a few people. But he says the spy provided the information that allowed the U.S. to arrest Cuban agents, including three spies the U.S. is now releasing as part of the deal.

Obama says the U.S. spy is now safely on American soil.

U.S. officials have said the spy is a non-American and that his identity remains secret.