For centuries, a £16-billion treasure trove of gold, silver and emeralds were lost beneath the waves of the Caribbean.

But now researchers believe they have identified the “holy grail of shipwrecks”.

The rich treasures of the Spanish galleon San Jose appeared to have been gone forever after they were sunk by the Royal Navy in 1708.

A squadron commanded by Charles Wager, who would go on to serve as the First Lord of the Admiralty, intercepted the treasure fleet near Baru Island, off Cartagena, Colombia, and attacked, detonating its powder magazines and sending it to the seabed.

The treasure was being transported from Peru to Spain to fund the War of the Spanish Succession against Britain and its allies.

Gold and silver coins, pearls and gems, claimed to be worth as much as £16 billion in current prices, sat aboard the San Jose.

The sinking of the ship dented the Spanish effort in the war, which ended with Britain gaining Gibraltar, Newfoundland and Nova Scotia.

Academics in Colombia now claim to have confirmed that a wreck found off the South American country’s coast in 2015 is the San Jose.