The US may not defend Nato allies who do not meet Trump spending targets as part of a major shake-up of the alliance.

Donald Trump is considering redrawing Nato engagement in a way that favours member countries with higher defence spending, a source told The Telegraph.

As part of the proposed revamp, the US may not defend a fellow Nato member that is attacked if the country does not meet the deemed spending target of two per cent, according to NBC.

The president is also reportedly considering prioritising military exercise with member countries that are spending the set percentage of GDPs on their defence, officials told the broadcaster.

Mr Trump has repeatedly criticised Nato countries for not meeting the current two per cent spending goal, arguing that the disparity puts an unfair burden on the United States which spends around 3.4 per cent of its GDP on defence, according to the Stockholm International Peace Research Institute ( SIPRI ).