Sir Keir Starmer is facing fresh calls to abandon his surrender of the Chagos Islands after the new leaders of Mauritius rejected the proposed deal.

Downing Street insists that the controversial agreement to give up sovereignty of the Indian Ocean archipelago is still on track, as it scrambles to get it signed before Donald Trump returns to the White House.

But the Prime Minister is facing renewed calls to ditch it after the recently elected government in Mauritius rejected the terms agreed in October and demanded the UK reopen negotiations.

This week Mauritian leader Navinchandra Ramgoolam had a phone call with outgoing US Secretary of State Antony Blinken, who is also keen to get the deal across the line.

The prime minister told his MPs afterwards: ‘I made him understand that we do not agree with certain things contained in the agreement concluded on October 3 by the former Mauritian prime minister and informed him that we have made a counter-proposal which will be transmitted to him.’

Days earlier his deputy had suggested that Mauritius is demanding more money to allow the continued operation of the crucial Anglo-American military base on Diego Garcia, the largest of the Chagos atolls.

Mauritius’s deputy prime minister Paul Berenger told constituents: ‘This base existed on our land, on our territory… but not only it is [about] our sovereignty.

‘There are some things you can’t accept if you’re a true patriot. They are trying to make us sign and they are quibbling on a small amount.’

Sir Keir Starmer is facing fresh calls to abandon the transfer of the Chagos Islands to Mauritius after the proposed deal was rejected

Downing Street insisted plans to give up sovereignty of the Indian Ocean archipelago were still on track

In response to the latest comments, shadow foreign secretary Dame Priti Patel said: ‘While Labour ministers refuse to answer straightforward questions in Parliament about the Chagos surrender, the Mauritian Government have let the cat out the bag.

‘They’ve confirmed that Labour wants the deal done before President Trump returns to office, and they want more British taxpayers’ cash. Starmer and [Foreign Secretary David] Lammy need to come to their senses and ditch the deal.’

But last night the UK Government insisted the deal was not dead.

Members of the Chagossian community protest against the Government’s decision at Parliament Square

A spokesman said: ‘We do not recognise these reports. The Mauritian prime minister has repeatedly been clear that he remains willing to conclude a deal and we are working to finalise this agreement, which is in both sides’ shared interests.

‘The long-term protection of the base on Diego Garcia has been the shared UK and US objective throughout and this agreement secures its future.’

Although president-elect Trump has not commented publicly on the deal, it is widely expected he will attempt to scupper it if it is not signed before his inauguration next month. Several of his allies believe it risks US national security since Mauritius is an ally of China.