Since returning to the White House in January, US President Donald Trump has repeatedly threatened to take control of Greenland, claiming the United States needs the strategically located, resource-rich island for security reasons. Trump's statements have sparked diplomatic tensions with Denmark.
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At the same time, Copenhagen has sought to strengthen ties with Nuuk, which in the long term is aiming for independence.
At the end of August, Denmark officially apologised to the victims of forced contraception in Greenland, addressing a point of significant tension between Greenland and mainland Denmark.
Under the new agreement, Denmark will fund the construction of a new runway in Ittoqqortoormiit, in eastern Greenland, and a new deepwater port in Qaqortoq, in the south, the Danish government said in a statement.
Additionally, Denmark will, in the future, bear the costs of treatment for Greenlandic patients in Danish hospitals.
"This agreement aims to support a self-reliant Greenland through long-term investments, among other initiatives," Greenlandic Prime Minister Jens-Frederik Nielsen said.
Nielsen added that "the challenges in the areas of health and housing, among others, are tremendous and this framework agreement will support our desired development in these and several other areas".
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