The Danish government has announced a huge boost in defence spending for Greenland, hours after US President-elect Donald Trump repeated his desire to purchase the Arctic territory.

Danish Defence Minister Troels Lund Poulsen said the package was a “double digit billion amount” in krone, or at least $1.5bn (£1.2bn).

He described the timing of the announcement as an “irony of fate”. On Monday Trump said ownership and control of the huge island was an “absolute necessity” for the US.

Greenland, an autonomous Danish territory, is home to a large US space facility and is strategically important for the US, lying on the shortest route from North America to Europe. It has major mineral reserves.

Poulsen said the package would allow for the purchase of two new inspection ships, two new long-range drones and two extra dog sled teams.

It would also include funding for increased staffing at Arctic Command in the capital Nuuk and an upgrade for one of Greenland’s three main civilian airports to handle F-35 supersonic fighter aircraft.

“We have not invested enough in the Arctic for many years, now we are planning a stronger presence,” he said.

The defence minister did not give an exact figure for the package, but Danish media estimated it would be around 12-15bn krone.

The announcement came a day after Trump said on his social media platform Truth Social: “For purposes of National Security and Freedom throughout the World, the United States of America feels that the ownership and control of Greenland is an absolute necessity.”

Greenland’s Prime Minister Mute Egede responded to Trump’s comments, saying “we are not for sale”.

But he added that Greenlanders should continue to be open for cooperation and trade, especially with their neighbours.

Analysts say that the plan has been under discussion for a long time and should not be seen as a direct response to Trump’s comments.

Until now Denmark has been very slow to expand its military capacity in Greenland, they say, but if the country is not able to protect waters around the territory against encroachments by China and Russia then US demands for greater control are likely to grow.

Army Maj Steen Kjaergaard of the Danish Defence Academy suggests it may have been Trump’s intention to pressure Denmark into such a move.

“It is likely to be sparked by the renewed Trump focus on the need for air and maritime control around Greenland and the internal developments in Greenland where some are voicing a will to look towards the US – a new international airport in Nuuk was just inaugurated,” he told the BBC.

“I think Trump is smart… he gets Denmark to prioritise its Arctic military capabilities by raising this voice, without having to take over a very un-American welfare system,” he added, referring to Greenland’s heavy dependence on subsidies from Copenhagen.

Trump’s original suggestion in 2019 that the US acquire Greenland, which is the world’s largest island, led to a similarly sharp rebuke from leaders there.

At the time Danish Prime Minister Mette Fredericksen described the idea as “absurd”, leading Trump to cancel a state trip to the country.

He is not the first US president to suggest buying Greenland. The idea was first mooted during the 1860s under the presidency of Andrew Johnson.