This thesis presents a COLREG-compliant collision avoidance and detection algorithm for the safe navigation of autonomous surface vessels. The method builds upon the Velocity Obstacle algorithm and implements the concept of the ship domain and the ship arena into the framework. The International Regulations for Preventing Collision at Sea – the COLREGs – are analyzed individually and incorporated in the designed collision avoidance algorithm. The COLREGs were used to determine the preferred passing side and optimized motion for every possible encounter situation with an obstacle vessel. The ship domain and arena help to perform proactive alterations when required, improving on the apparent shortcomings of the VO algorithm. This framework leads to a more proactive collision avoidance algorithm that guarantees COLREG compliance and safe navigation in mixed-traffic environments. The robustness and wide adaptability of the developed algorithm are validated in different encounter situations, ranging from vessel-to-vessel batch simulations to complex, multi-vessel scenarios.