Denmark agreed to allocate 143 billion kroner ($21 billion) to its armed forces over the next 10 years.
With the new budget, Denmark will in 2030 reach a NATO requirement on spending 2% of gross domestic product on its defense.
The government reached the deal with most of the opposition parities in parliament, the government said in a statement.
While a founding member of the North Atlantic Treaty Organization (NATO), Denmark has for decades spent less on military than its allies, allocating about 1.3% of GDP.
The parties behind the new defense pact will decide later this year on the details of the plan, including plans to instate compulsory military service for women.
Source: Qatar News Agency