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Britain is set to sign a deal handing sovereignty the Chagos Islands to Mauritius on Thursday in exchange for securing a strategically important UK-US military base, according to media reports.

Under the deal, the East African nation would gain control of the Chagos Archipelago from the UK, allowing the US and UK to continue operating a strategically important military base on one of the islands for an initial period of 99 years "in exchange for a multi-billion pound payment."

The Telegraph reported that Prime Minister Keir Starmer will attend a virtual signing ceremony with representatives from the Mauritian government on Thursday.

UK Foreign Office announced the plan to hand over sovereignty of the Chagos Islands, officially known as the British Indian Ocean Territory (BIOT), in October 2024 following negotiations with then-Mauritian Prime Minister Pravind Jugnauth.

Following elections in November, current Prime Minister Navin Ramgoolam came to power who expressed concerns about the deal on the Chagos Islands, a group of seven atolls in the Indian Ocean that include more than 60 islands.

Progress on the deal was also delayed after the election of US President Donald Trump, but in January, the Foreign Office announced that Britain and Mauritius made good progress in their ongoing discussions about the future of the Chagos Islands.

"We are working to sign a deal which will safeguard the joint UK-US base on Diego Garcia, which is vital to our national security," a Foreign Office spokesperson said as reported by the BBC on Thursday.

While the reports are circulating regarding the deal, the BBC reported that it was halted by "last-minute legal action."

However, later a High Court judge lifted an injunction that blocked the British government from concluding its negotiations over the Chagos Islands.

Defense Secretary John Healey is expected to make a statement in the House of Commons later Thursday about the "future of the Diego Garcia military base."

In the late 18th century, France took control of the Chagos Archipelago and Seychelles as dependencies of Mauritius, and slaves from African countries were transported there to work in the coconut plantations.

In the early 19th century, Britain took over the islands after the surrender of the French.

Mauritius and its dependencies, including the Chagos Islands, were officially proclaimed a colony of Britain in 1814 under the Treaty of Paris.

The Chagos Archipelago was separated from Mauritius in 1965 by the UK.

Mauritius says it was forced to give it up in exchange for independence, which it gained in 1968.