TORONTO

The US on Thursday denied claims that China has reached an agreement with Cuba to establish a spy base in the island nation, according to a statement by the Pentagon.

China's plan to establish an electronic intelligence facility in Cuba, as reported in The Wall Street Journal (WSJ) citing "US officials familiar with classified intelligence," was "not accurate," Pentagon spokesman Patrick Ryder told reporters.

"I can tell you based on the information that we have that that is not accurate. We are not aware of China and Cuba developing any type of spy stations separately," he said.

"I would say that the relationship that those two countries share is something that we continuously monitor," he added.

Ryder said they "certainly" know that China and Cuba maintain some kind of relationship but the allegations in the press do not reflect the truth.

He noted that they will continue to watch closely "any concerning activities" of China in various parts of the world.

Cuban and Chinese officials have reached an agreement in principle that includes the establishment of a facility to conduct what is known as signals intelligence collection, The Wall Street Journal reported Thursday.

In exchange, China would pay the impoverished island nation billions of dollars, WSJ reported.