Donald Trump has ordered his military to draw up options to “reclaim” the Panama Canal – including by force.
The president has repeatedly said he wants the US to regain control of the strategically important waterway, which was handed over to the Panamanians by American authorities in 1999.
Wide-ranging proposals being developed by the US Southern Command include a new partnership with Panamanian security forces, an increase in troop numbers in the region and seizing the canal by force, officials told NBC News.
The sources said the use of force would depend on whether Panamanian security forces would agree to co-operate with the US in a partnership.
Mr Trump wants to reclaim the canal in order to diminish China’s influence in the region, the officials added.
Panama has denied claims that it has granted Beijing greater influence over the waterway in recent years and said only its government could determine the canal’s future.