The tiny Pacific island nation of Palau has agreed to accept up to 75 illegal migrants from the United States in a deal worth $7.5million. (snip)

Under a new memorandum of understanding, Palau will let the migrants live and work on the sparsely populated archipelago, officials said Wednesday.

The $7.5 million return from the US will be used for public service and infrastructure projects in Palau.

With some 18,000 people spread across hundreds of volcanic isles and coral atolls, Palau is by population one of the smallest countries in the world.

The migrants from the United States have not been charged with crimes and will help to fill needed jobs in Palau, both sides said.

"The leaders discussed a new U.S.-Palau Memorandum of Understanding regarding the transfer of third-country nationals with no known criminal histories," the State Department said in a statement after Tuesday's call.

In late July, Palau's Congress said it "cannot accept" a U.S. proposal for it to accept asylum seekers from other countries.

Palau, with a population of 17,000, has a compact of free association with the U.S., which provides economic assistance in return for allowing American military access to its territory.