The UK and Mauritius have been holding talks and hope to finalise the deal to hand back the Chagos Islands “as quickly as possible”.
They held a “series of productive, ongoing conversations and exchanges” on finalising the treaty, the countries said in a joint statement on Friday.
It comes after the new Mauritian prime minister rejected the deal earlier this week, which was struck under his predecessor.
“Both countries reiterated their commitment to finalising a treaty as quickly as possible, whose terms will agree to ensure the long-term, secure and effective operation of the existing base on Diego Garcia and that Mauritius is sovereign over the Archipelago,” the statement said.
The agreement would see the UK give up sovereignty over the islands, including Diego Garcia, which houses a strategically important UK-US military base.
The proposed deal was struck before elections in both Mauritius and the US and senior figures in the incoming Trump administration have voiced doubts about it.
New Mauritian Prime Minister Navin Ramgoolam said the draft deal “would not produce the benefits that the nation could expect” and that negotiations had restarted.
He said the new Mauritian administration has submitted its own suggestions to the UK, which has now responded with its counter-proposals.
Sir Keir Starmer is also facing opposition at home, including from Conservatives who have warned against “rushing it through” before Donald Trump re-enters the White House.
Reform UK leader Nigel Farage warned there is “very deep disquiet” in the Trump administration about the long-term future of Diego Garcia under the deal.
The Government has argued that a deal to hand over the islands, known as the British Indian Ocean Territory, is necessary following an International Court of Justice ruling.
Ministers have insisted the provisions for a 99-year lease on the Diego Garcia base address legal uncertainty around the facility.
