Donald Trump has said the US has entered into a deal with Denmark that gives the US "permanent control over security" in Greenland.
In a post on Truth Social, he said the US "will immediately begin the process of developing a large military presence in the appropriate part of Greenland".
He added: "This is a dream come true for the United States of America, one that is very important, historic, and special."
Explained: What we know about the deal
In a statement, Prime Minister Mette Frederiksen said both Denmark and Greenland expect to sign an agreement with the US next week to strengthen security in the Arctic and the North Atlantic region.
Mr Trump has previously called on Denmark to sell the island to the US and repeatedly insisted that it is crucial for US security, specifically his plan to build a 'Golden Dome' shield.
The defence system will guard against missiles being fired over the Arctic region, potentially from Russia and China.
Greenland also holds rich deposits of rare earth minerals needed for telecommunications, as well as uranium, billions of untapped barrels of oil and a vast supply of natural gas that used to be inaccessible but is becoming less so.
Denmark and Greenland have both consistently asserted that the island is not for sale but Mr Trump suggested in his social media post that an understanding may have been reached.
He went on: "We look forward to working with the wonderful people of Denmark and Greenland toward a magnificent future with respect to this large, and highly strategic, parcel of land. We will be very protective of it!"
More from Sky News:
Why Trump wants Greenland
What have Greenlanders said about Trump's plan?
Parliamentary action by the Danish and Greenland governments will be required before the deal can be enforced.
Ms Frederiksen said: "I am pleased that there is a prospect of a good agreement for Greenland, the kingdom of Denmark and the US.
"An agreement that strengthens our common security in the Arctic and the North Atlantic area and is therefore also good for NATO and Europe.
"And an agreement that at the same time recognises the sovereignty and territorial integrity of the kingdom and the right of the Greenlandic people to self-determination."
Greenland's Prime Minister Jens-Frederik Nielsen said it would "ensure and strengthen" the security of Greenland, Denmark, the US, and the Western alliance - calling it "to the benefit of us all".
US secretary of state Marco Rubio said that the deal "permanently and completely" addressed Washington's national security concerns with respect to the island.
"Greenland will forever be part of the strategic defence area of North America and exclude any adversary from it and the surrounding area," he added.
(c) Sky News 2026: Denmark deal gives US 'permanent control over security' of Greenland, says Trump
Greenland: What do we know about Trump's deal with Denmark over the territory?
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