President Donald Trump says a new security agreement involving the United States, Denmark and Greenland will strengthen the defense of the Arctic and provide greater security for both North America and Europe.

The agreement was signed Tuesday in New York during the United Nations General Assembly, bringing together Trump, Danish Prime Minister Mette Frederiksen and Greenlandic Prime Minister Jens-Frederik Nielsen. The deal follows months of diplomatic tension surrounding Greenland and the Trump administration’s strong interest in the strategically important Arctic territory.

Under the new arrangement, the United States will be able to expand its military presence in Greenland. Reuters reports that the agreement allows for additional American facilities, including plans involving Narsarsuaq and Mestersvig, while the existing U.S. presence at Pituffik Space Base will continue to play an important role. The agreement also strengthens cooperation between the three parties on Arctic defense and security.

Greenland remains part of the Kingdom of Denmark, and officials involved in the agreement have emphasized that the deal does not transfer sovereignty over the island to the United States. Greenland also retains its right to self-determination. Danish and Greenlandic officials have presented the agreement as a way to increase cooperation while maintaining those principles.

The Arctic has become increasingly important to the United States and its European allies because of its location between North America and Europe, its military significance and growing competition involving Russia and China. The new agreement is intended to strengthen the Western presence in the region and make it more difficult for outside powers to establish a strategic military foothold in Greenland.

Trump described the agreement as an important step for security and highlighted its significance for Europe as well as the United States. Danish and Greenlandic leaders also described the agreement as a new phase in their security cooperation with Washington after a period of unusually strained relations.

NATO Secretary General Mark Rutte welcomed the agreement, saying stronger security cooperation in the Arctic and North Atlantic is important for both Europe and North America. European leaders, including Germany’s Friedrich Merz and European Commission President Ursula von der Leyen, also welcomed the agreement and emphasized the strategic importance of Arctic security.

The agreement marks a major change from the earlier dispute over Trump’s proposals to acquire Greenland. Rather than changing ownership of the territory, the new arrangement focuses on military access, defense cooperation and limiting the ability of potential adversaries to establish a presence there.

For Greenland and Denmark, the deal provides a framework for expanded cooperation with the United States while formally maintaining Danish sovereignty and Greenland’s self-government. For Washington, it provides a long-term security arrangement in one of the world’s most strategically important regions.

The Arctic is expected to remain a major focus of international security discussions in the years ahead, and the new Greenland agreement puts the United States, Denmark and Greenland at the center of that effort.