The White House is considering a plan to buy the Chagos Islands from Mauritius, the Telegraph reports.
United States officials have drawn up a proposal to bypass the United Kingdom and make their own deal to take control of the US-UK Diego Garcia air base, the report said.
Reuters could not immediately confirm the report.
The White House and the UK Foreign Office did not immediately respond to a request for comment.
The plan is among several options being drafted by the White House, in a paper aimed at providing alternatives to UK Prime Minister Keir Starmer ceding sovereignty of the Indian Ocean archipelago to Mauritius, the report said.
US President Donald Trump's administration has been in regular discussions with the UK government about securing the future of Diego Garcia, the report added.
The UK government in April put on hold its deal to cede sovereignty of the Chagos Islands, home to the Diego Garcia air base, which has been criticised by Trump.
Trump said in February the deal was a "big mistake".
