UK is poised to drop plans to hand the Chagos Islands back to Mauritius. (Image: Getty)

       Britain is poised to drop plans to hand the Chagos Islands back to Mauritius amid concerns over its strong links with China.

       David Cameron, Grant Shapps and Oliver Dowden are understood to be cooling on a deal over the Indian Ocean archipelago.

       The Foreign Secretary has warned any changes to the islands, which have been British-owned since 1814, would pose serious “risks”.

       The 60-strong island chain is home to the Diego Garcia military base, which is leased by the UK to the United States and has been used for American bombing missions in the Middle East.

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       But the United Nations has called for the Chagos - known as part of British Indian Ocean Territory (BIOT) - to be returned, with a UN court ruling that Britain's possession of the overseas territory is "unlawful".

       Talks are continuing over a "Cyprus-style" deal to give Mauritius the islands, with Britain to remain in control of the military base.

       It mirrors the agreement struck between Britain, Greece, Cyprus and Turkey over two military bases in Cyprus in 1960, when the island was granted independence from the UK.

       The deal would also involve the UK making a payment of as much as ￡2 billion, to the Mauritian government in exchange for use of the military base.

       Mr Shapps, the Defence Secretary, Lord Cameron and Mr Dowden are understood to be concerned that ceding them to Mauritius, which is allied with China, would endanger the UK's "special relationship" with the US and its defence interests in the Indo-Pacific region.

       Another plan under discussion would see all of the territory given to Mauritius, and the base leased back to the UK and US for a fixed period.

       However, Mr Shapps, who took office in August, is understood to have told officials that the islands should remain under British control, rejecting the international court ruling and defying the UN.

       Lord Cameron told the Foreign Affairs select committee of his concerns last week: “We face a very insecure and dangerous world and there is a need to maintain our security and strengthen our alliances to protect ourselves, and we should think of Diego Garcia in that context.

       “It is an important national asset that we share with the Americans.

       “Any negotiations we have with the Mauritians, the overriding question must be the security, safety and usability of this base. We must look at all risks that there could be in any change of circumstance and that is how we must proceed.”

       The US used Diego Garcia to fly bombing missions to Afghanistan in the aftermath of the 9/11 attacks, and to Iraq from 2003.

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       Since 2006, it has been used as an "unsinkable aircraft carrier" facility to supply troops working in the Middle East.

       Former prime minister Boris Johnson has warned it would be a "colossal mistake" to give away the Chagos Islands.

       Conservative MP Michael Ellis told the Daily Express that there are “sinister” ambitions behind Mauritius move to claim the islands.

       “There can be no doubt that the Chinese are pushing Mauritius to claim Diego Garcia,” he said.

       “China wants access and control of the port and airfield facilities because they are so strategically important.

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       “Even if a UK hand-over to Mauritius could be negotiated with sufficient assurances, it would mean little as China flexes its economic and administrative power in Mauritius.”

       Admiral Lord West, the former First Sea Lord and Chief of the Naval Staff, has previously said ceding the territory would play into Beijing's hands.

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       “Ceding the Chagos Islands to Mauritius would be an irresponsible act, which would put our strategic interests - and the interests of our closest allies - in danger, while also recklessly undermining fundamental principles of international law,” he warned in a Policy Exchange report.

       Chagossians have spent decades fighting to return to the islands after more than 1,000 people were forced to leave in the 1960s and 1970s to make way for the military base.

       Thousands of Chagossians now live around the world, mostly in Mauritius, the UK and the Seychelles.

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