The defence ministry said a new infantry battalion would be created to ensure a "continuous military presence" on the strategic island of Bornholm in the Baltic Sea.

"We live in uncertain times, where it is important to be able to defend Denmark in a situation where security is deteriorating, and here we have given special consideration to Bornholm," Defence Minister Troels Lund Poulsen said.

The government announced in February that it would add 50 billion kroner ($7 billion) over the next two years to its defence spending because of the increased threat from Russia.

The additional funds will bring Denmark's defence spending to three percent of gross domestic product (GDP).

The defence ministry said that the number of military staff -- troops and civilian workers -- would rise from 23,000 to 28,000. Danish media reported that the additional 5,000 included military and civilian positions.

Bornholm island, south of the Swedish coast, is considered strategic as it needs to be passed to exit the Baltic Sea.

Earlier this week the government announced a deal with opposition parties to strengthen the Danish Navy "to improve maritime surveillance and enforcement of sovereignty at sea".

The agreement included buying four marine environment and mine-laying vessels, as well as 21 vessels for the Danish Home Guard. They are expected to cost four billion kroner ($607 million).

Bornholm island, south of the Swedish coast, is considered strategic as it needs to be passed to exit the Baltic Sea.

Tensions have mounted around the Baltic since Russia's invasion of Ukraine in February 2022.

In January, NATO announced the launch of a Baltic Sea patrol mission, Baltic Sentry, to secure critical underwater infrastructure.

In February Prime Minister Mette Frederiksen cited a need to "rearm massively to avoid war."

Frederiksen's comments came after US President Donald Trump rattled European nations and Kyiv by opening talks with Moscow.

The US president has also raised doubts about Washington's commitment to NATO by demanding that European countries take more responsibility for their own defence.

Trump has strained relations with Denmark by repeatedly signalling that he wants control over Greenland -- an autonomous Danish territory.