Cambodian leader Hun Sen has dismissed as “fake news” a report that his country and China have reached a secret understanding allowing Beijing a military presence in the kingdom — a move that would rattle its neighbours and mark a significant projection of Chinese power into south-east Asia.

The Cambodian prime minister’s denial on Monday came after the Wall Street Journal reported that the two countries had signed an agreement allowing China’s armed forces to use a navy base at Ream, near the city of Sihanoukville, for 30 years, with renewals every 10 years after that.

“Why would Cambodia need to have a Chinese military presence on our land?” Hun Sen said in an interview with the pro-government Fresh News website. “We haven’t had any discussion with Chinese leaders, much less signed any agreement.”