BRUSSELS: US Secretary of Defence Pete Hegseth said on Thursday that Nato allies were close to a deal on spending ahead of a summit later this month, in a bid to satisfy US President Donald Trump`s demand that it reach five percent of GDP.

Trump is pressuring alliance members to announce a massive boost in the target for their military budgets at the June 24-25 summit in the Netherlands.

`Countries in there are well exceeding two percent and we think very close, almost near consensus, on a five percent commitment for Nato in The Hague later this month,` Hegseth said after meeting his Nato counterparts in Brussels.

Nato chief Mark Rutte has put forward a compromise agreement of 3.5pc of GDP on core military spending by 2032, and 1.5pc on broader security-related areas such asinfrastructure.

`This alliance, we believe, in a matter of weeks, will be committing to five percent 3.5pc in hard military and 1.5pc in infrastructure and defence-related activities,` Hegseth said.

`That combination constitutes a real commitment, and we think every country can step up.` The threat from Russia after more than three years of war in Ukraine and worries about US commitment to Europe`s security under Trump are driving up military budgets in Europe.

Multiple diplomats say Rutte appears on track to secure the deal for the summit in The Hague, though a few allies are still hesitant about committing to such levels of spending. `I have total confidence we will get there,` Rutte said after the meeting.-AFP