Bahrain will provide $23m to construct the base with the UK covering ongoing costs.
The UKs Royal Navy already maintains four minesweepers from Mina Salman. The new permanent base will allow it to base larger ships such as destroyers and aircraft carriers in the region, and maintain and service ships there.
This is a clear statement of Britains commitment to our sustained presence East of Suez, said UK Foreign Secretary Philip Hammond, speaking at a security conference in Manama. Its another example of our growing partnership with Gulf allies to tackle the threats we face together.
The deal reaffirms our joint determination to maintain regional security and stability in the face of challenging circumstances, said Bahrains Foreign Minister Shaikh Khalid bin Ahmad al-Khalifa.
Bahrain has hosted a US Naval Forces base since 1971, when the Royal Navy base was transferred to it.