The United States and Denmark are closing in on a potential deal over the status of Greenland that would give the US military an expanded presence on the island, two people familiar with the matter told Reuters.

Any potential accord would stop well short of US President Donald Trump's ambition to acquire Greenland outright, said the people, who requested anonymity. But an agreement could nonetheless result in the US having a more robust presence on a landmass that has captured Trump's attention for nearly a decade.

The parties have discussed arrangements to ensure that Greenlandic territory could be used for the Golden Dome, a massive missile defense shield that the Trump administration is attempting to build to protect US territory, the people said.

One of the people said that the parties were also discussing arrangements to limit Chinese presence on and influence over the island.

The announcement of a deal is highly possible - though not guaranteed - in the coming days or weeks, the people said. It is unclear whether, or how strongly, Trump backs the emerging agreement.