The moment when Croats on the streets of capital Zagreb hear that a U.N court has acquitted two senior Croatian generals accused of war crimes.

Judges at the court in the Hague ordered the immediate release of Ante Gotovina, a commander in the Croatian army and Mladen Markac, a police commander.

Gotovina, a hero to many Croations, had been sentenced to 24 years in prison after prosecutors accused him of targeting civilians during the bitter Balkans conflict of the 1990s.

The crowds in Zagreb, including many war veterans, greeted the new verdicts with jubilation.

This man hails the decision as a victory for common sense, adding "Long live our generals' and 'Long live Croatia'.

Croatian Prime Minister Zoran Milanovic, while welcoming the verdict, was more measured.

He said Croatia would still bear responsibility for its mistakes in the war and would continue to strive to fulfil its debt to justice.

There were also jubilant scenes outside the Hague as relatives and supporters celebrated the verdict.

The two men, who spent five years in custody, are expected to be flown home on Friday.