The White House asked the US military to develop options for increasing American troop presence in Panama, NBC News reported Thursday.
Citing two US officials familiar with the planning, it said the US Southern Command is developing plans that vary from partnering more closely with the Panamanian military to the less likely option of US troops seizing the Panama Canal.
Whether military force is used depends on how much partnership the Panamanian military is willing to engage with the US, the officials added.
Officials told the news outlet that the commander of US Southern Command, Adm. Alvin Holsey, presented draft strategies this week to Defense Secretary Pete Hegseth, who is expected to visit Panama next month.
They said a US invasion of Panama is "unlikely" and would only come under serious consideration if a larger American military presence in Panama does not achieve President Donald Trump's goal of reclaiming the waterway.
Trump said he does not rule out force to take control of the canal, which connects the Pacific Ocean to the Atlantic Ocean.
He accused Panama of charging exorbitant prices to American ships and demanded the Central American country reduce fees or return the canal to the US. Trump also alleged Chinese involvement in the canal's management.
US Secretary of State Marco Rubio visited Central America last month to counter China's growing regional influence. Rubio warned Panamanian President Jose Raul Mulino that Washington would "take necessary measures" if Panama did not curtail China's influence and control of the Canal.
Mulino then indicated that Panama was withdrawing from China's Belt and Road Initiative -- a cornerstone of China's foreign policy.