The United States and Denmark have signed a security agreement that will allow American forces to set up bases on Greenland, a move that comes after former President Donald Trump threatened to annex the territory.

Denmark, which retains sovereignty over the self‑governing island, agreed to a package that lets the US build a significant military presence while preventing other powers from establishing bases there.

"The agreement lets Washington establish a military footprint on Greenland while keeping Danish sovereignty intact."

Greenland sits in a strategically vital stretch of the Arctic, a region that is opening up as ice retreats and new shipping routes emerge.

The deal, negotiated over several months, was prompted by Trump’s 2023 remarks that he would take Greenland if Denmark failed to act on his demands. The Danish government confirmed the talks had been driven by a desire to maintain control over the island while addressing security concerns.

NATO welcomed the agreement as a strengthening of the alliance’s northern flank. A spokesperson for the organisation said the arrangement would bolster collective defence in a zone that is increasingly contested.

The Pentagon said the move will enhance deterrence against potential Russian or Chinese activity in the Arctic, noting that a forward presence could improve monitoring of maritime traffic and ice‑breaking operations.

Denmark’s foreign ministry said it had preserved sovereignty and would monitor any developments. It also highlighted the importance of environmental safeguards and the need for cooperation with local Inuit communities.

Russia has recently expanded its Arctic patrols, and China has declared a "peaceful interest" in the polar region, raising concerns among western capitals. The new agreement is seen as a way to counterbalance those moves without provoking a broader arms race.

The US will begin construction of a forward operating base at Nuuk in the coming months, while Denmark will continue to oversee local governance and environmental protection. The first American troops are expected to arrive by early next year, marking the largest foreign military presence on the island to date.