A strategic military base is located on the Chagos archipelago's largest island, Diego Garcia. Photo: Getty Images

Wes Streeting confirmed the deal was being looked at again after US President Donald Trump called it "terrible" at the UN General Assembly on Tuesday.

The original agreement would see the UK cede sovereignty of the territory to Mauritius and pay an average of £101m ($136m) per year to lease back a joint UK-US military base there, prized for its strategic location in the Indian Ocean.

In April, the deal, agreed under Sir Keir Starmer, was paused indefinitely because Trump pulled his support.

Streeting said "we have to" review the deal "because the United States doesn't support it".

"What President Trump said yesterday wasn't new, but I think it does provide absolute clarity that his position on this Chagos deal as currently drafted is not changing," he told BBC Breakfast.

"So we have to do more work with our American allies, with President Trump and his administration, to get the deal to a place where he can support it."

Streeting said the focus now would be to secure a long-term certainty for the base on Diego Garcia, the Chagos archipelago's largest island.

He said it had been the view of every UK prime minister since Boris Johnson that an ongoing legal process - as Mauritius argues it was illegally forced to give away the islands in 1965 to gain independence - risks the security of the base.

During Trump's first face-to-face meeting with Prime Minister Andy Burnham at the UN General Assembly in New York, the US president criticised the "terrible deal" and said the UK was "going to be looking" at it.

Burnham replied: "Yep."

He later told broadcasters he has "inherited the situation and we need a resolution".

Burnham added: "It's critical to safeguard the future of the base, and that matters to us for security reasons, but also clearly to the United States as well.

"What I said in the meeting is that we will work to find that resolution between the different sides, and we'll work hard to find it."

The prime minister had spoken to his Mauritian counterpart, Navin Ramgoolam, ahead of his trip to New York, and an official readout from that meeting said Burnham "reiterated his commitment to continue doing everything possible" along with the US to ratify the deal.

The "review" is not expected to constitute a formal process operating to a specific timeframe.

Government sources are insisting that Burnham and Streeting's comments do not represent a major shift from the previous position, which was that any deal would require American support.

However Streeting's comments were notable for their explicit acknowledgement that without changes the deal is not going to attract Trump's support.

Prior to the pause in April, the UK and Mauritius had signed an agreement in May 2025 and a final draft of the bill to hand over sovereignty of the islands had not passed Parliament.

Under the terms of the deal agreed in 2025, Britain would hand sovereignty over the archipelago to Mauritius but lease back the Diego Garcia base for 99 years, which the UK government said would be a net overall cost of £3.4bn.

However, Sir Keir, who was then prime minister, came under heavy criticism from opponents who said the real cost of the deal could amount to £35bn, adjusting for inflation, and risked allowing China to establish a presence on the archipelago.

Trump has been a frequent critic of the deal, previously branding it a "a blight on our great ally" and an "act of total weakness".