Mauritius has reportedly demanded £800 million per year and billions in reparations from Britain in talks over the Chagos Islands.

Britain and Mauritius want to finalise a deal to hand back the islands in the Indian Ocean before re-enters the White House.

Marco Rubio, who Mr Trump wants for this Secretary of State, has said the deal poses a serious threat to US national security as it hands the islands to an ally of China.

Mauritius's new prime minister, Navin Ramgoolam, rejected struck under his predecessor.

Prime Minister Sir Keir Starmer is under pressure to give up surrendering the group of islands, including Diego Garcia, where a joint US-UK military base is located.

No.10 has refused to say how much it has offered to pay for a 99-year lease to secure the base, but a source told the Sunday Times that Mauritius wanted "crazy money."

The unnamed source told the publication: "They were talking £800million a year for as long as we wanted to keep the base there, plus billions of pounds in reparations."

A Foreign Office spokesman said an amount that high was not considered "at any point" in the negotiations between Britain and Mauritius.

Sources close to Foreign Secretary David Lammy said Britain's negotiators never "considered" paying such amounts, but they did not deny Mauritius ever demanded them.

They said the proposed deal is "underpinned" by a financial package which will support "a new era of economic partnership between the UK and Mauritius".

The British Government has argued a deal to hand over the islands, known as the British Indian Ocean Territory, is necessary after an International Court of Justice ruling.

But Sir Keir has faced opposition, including from Reform UK leader , who has previously warned that there is "very deep disquiet" in the incoming Trump administration about the long-term future of the Diego Garcia base.

Mr Farage told the Commons earlier this month that the Trump administration can't understand why Britain would surrender the islands' sovereignty on an advisory judgement for a "pretty obscure court".

Lord Ashcroft, former Deputy Chairman of the Conservative Party, said "surrender" of the Chagos Islands "is outrageous, unnecessary and costly."

Tory MP Sir Iain Duncan Smith suggested Mauritius is taking advantage of a weak Government, telling Times Radio: "They know when they see a weak government, and they're seeing one right now in the UK."

Mr Ramgoolam last week spoke to outgoing US Secretary of State, Antony Blinken, who also wants to get a deal done. The Mauritian leader said afterwards that he tried to impress on Mr Blinken that there are details in the rejected agreement which couldn't be agreed to and a counter-offer has been "transmitted to him".

Mauritius's Deputy Prime Minister, Paul Berenger, said previously that the issue is not only about sovereignty, adding: "There are some things you can't accept if you're a true patriot. They are trying to make us sign and they are quibbling on a small amount."