NATO Secretary-General Mark Rutte and Danish Prime Minister Mette Frederiksen agreed at a meeting on Tuesday that allies need to focus on strengthening defences in the Arctic, a source familiar with the talks told Reuters.

The Secretary-General of NATO, Mark Rutte, and the Prime Minister of Denmark, Mette Frederiksen, have agreed on the need to strengthen defenses in the Arctic, according to a Reuters source knowledgeable about the discussions.

Denmark has unveiled plans to allocate around DKr14bn (equivalent to $1.96bn) for the enhancement of its military capabilities in the Arctic and North Atlantic territories. The consensus on this allocation was reached by the political parties including the Greenlandic and Faroese Governments that support the 2024-2033 Danish Defence Agreement.

Denmark said on Monday it would spend 14.6 billion Danish kroner ($2.05 billion) boosting its military capabilities in the Arctic – a decision that comes amid continuing furor following US President Donald Trump’s renewed interest in controlling Greenland,

President Trump told Denmark’s leader he wanted to take over Greenland, European officials say. Denmark has asked its E.U. allies not to inflame the situation until Mr. Trump’s intentions are clearer.

The move comes after President Donald Trump voiced his desire to acquire Greenland and refused to rule out using military force.