
The Times newspaper said planned legislation underpinning the deal to cede the islands to Mauritius, which needs the backing of Washington, would not be included in the government’s next parliamentary agenda.
Prime Minister Keir Starmer’s office said London would try to persuade Washington to give its formal approval.
Trump said in February that the deal was a “big mistake”, having previously said it was the best that Starmer would get.
Under the deal, Britain would retain control of the strategically important military base on Diego Garcia on a 99-year lease that preserves US operations there.
A British government spokesman said ensuring the long-term operational security of Diego Garcia would remain a priority.
“We continue to believe the agreement is the best way to protect the long-term future of the base, but we have always said we would only proceed with the deal if it has US support.
“We are continuing to engage with the US and Mauritius,” the spokesman said.
The alliance between Washington and London has come under strain in recent weeks over Starmer’s reluctance to get involved in the US-Israeli war on Iran and his refusal at the start of the conflict to allow Trump to use British air bases to launch attacks.
US forces have since been permitted to carry out what the prime minister calls defensive strikes.
Trump has also repeatedly criticised the British leader, saying he was “not Winston Churchill” and had ruined what is often called a “special relationship” between Britain and the US.