Donald Trump announced on Wednesday night that he had struck a deal on the future of Greenland after talks with the head of Nato.

Trump has stirred fresh controversy with European allies after sharing an image on Truth Social showing Canada and Greenland coloured in US flag hues, reviving tensions over his push to acquire the Arctic island.

President Trump says he won't use force but calls for immediate negotiations for US to acquire Greenland from Denmark during his World Economic Forum speech in Davos.

The United States will control parts of Greenland by designating them as sovereign base areas under the terms of a proposed deal agreed in Davos.

The Greenland issue has quickly become a point of concern for the NATO military alliance and the European Union, as Trump has repeatedly ruled out the possibility of using military force to take over Greenland,

Greenland may look very small on the map, but in Washington it has become central to debates about security, resources, and the future of the Arctic. The world's largest island, home to just 57,000 people,

President Donald Trump said Wednesday that “anything less” than US control of Greenland is “unacceptable,” arguing the United States needs the territory for national security purposes, which could in turn strengthen NATO.

The NATO secretary general, Mark Rutte, told a panel in Davos that he was working behind the scenes to resolve the furor over President Trump’s threats to take Greenland, which is threatening to upend the military alliance’s unity. “I can assure you, the only way to deal with that is, in the end, thoughtful diplomacy,” Rutte said.

The president's push to gain control of Greenland, a Danish territory, has created anxiety about the future of the alliance throughout Europe.