(Reuters) -- Algeria has decided to acquire 51 percent of Vimpelcom's Djezzy mobile phone unit and Vimpelcom will stay on as operator, the Algerian state news agency reported on Sunday.

The announcement was made by Telecommunications Minister Moussa Benhamadi, the APS news agency reported. It said the Algerian Finance Ministry and Vimpelcom would soon sign an agreement that would allow a valuation of the Djezzy unit to proceed.

(Reporting by Christian Lowe; Editing by Maureen Bavdek)