Foreign Secretary Philip Hammond announced the deal on Saturday at a security conference in the Bahraini capital, Manama, where he assured Gulf allies that "your security concerns are our security concerns."

Hammond says the deal ensures a permanent footing for the Royal Navy in the oil-rich Gulf.

The agreement calls for improved onshore facilities at Bahrain's Mina Salman port that will give the Royal Navy a base to plan, store equipment and house military personnel. Bahrain already hosts US Navy's 5th Fleet.

The deal comes amid airstrikes by a U.S.-led coalition targeting the Islamic State group in Iraq and Syria.

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