US to build two military bases in Greenland under new deal with Denmark

The US, Denmark and Greenland have signed a defence deal that allows Washington to build two new military bases in the Arctic territory, while reaffirming Copenhagen's sovereignty over it.

At a signing ceremony at the UN General Assembly in New York, US President Donald Trump said "we will immediately begin the process of developing a large military presence in the appropriate locations".

Danish PM Mette Frederiksen said the deal was "good for the US, Denmark and Greenland" and also for Europe and Nato, while Greenland's PM Jens-Frederik Nielsen said it was a "win-win-win".

The three leaders then inked the deal, seemingly ending more than a year of tension over the Arctic territory.

Trump had threatened to "take" the semi-autonomous Arctic territory over what he said were national security concerns, citing its strategic defence location and its mineral wealth.

His rhetoric prompted outcry from Greenlanders, Danes and European leaders who issued a joint statement saying his words "undermine transatlantic relations and risk a dangerous downward spiral".

The deal signed on Tuesday amends and updates a 1951 defence agreement between Denmark and the US.

The new agreement says the US "shall be allowed to establish an additional Defence Area at Narsarsuaq and Mestersvig" - referring to locations in Greenland's south and east.