The White House is considering a plan to buy the Chagos Islands from Mauritius, the Telegraph reported on Sunday.
US officials have drawn up a proposal to bypass the UK and make their own deal to take control of Diego Garcia, the report said.
Reuters could not immediately confirm the report. The White House and the UK Foreign Office did not immediately respond to a request for comment.
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The plan is among several options being drafted by the White House, in a paper aimed at providing alternatives to British Prime Minister Keir Starmer ceding sovereignty of the Indian Ocean archipelago to Mauritius, the report said.
The White House has been in regular discussions with Downing Street about securing the future of Diego Garcia, the report added.
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Britain’s government in April put on hold its deal to cede sovereignty of the Chagos Islands, home to the US-British Diego Garcia airbase, which has been criticised by Trump.