PHNOM PENH: Cambodian Prime Minister Hun Sen on Monday strongly denied that he was allowing China to set up a military outpost in the country.

The denial came after a news report alleged that the two nations signed a secret pact allowing Beijing exclusive use of a naval base on the Gulf of Thailand.

Hun Sen told the pro-government Fresh News website that the report by The Wall Street Journal was "the worst distorted news'', and that Cambodia had never discussed with China setting up a base.

"No such thing happens. Foreign military base is against Cambodia's constitution,'' Fresh News quoted Hun Sen as saying.

The Journal's report said an early draft of the reputed agreement seen by US officials would allow China use of the Ream naval base for 30 years, where it would be able to post military personnel, store weapons and berth warships.

China is Cambodia's biggest investor and closest political partner. Chinese support allows Cambodia to ignore Western concerns about its poor record in human and political rights, and in turn Phnom Penh generally supports Beijing's geo-political positions in international forums on issues such as China's territorial claims in the South China Sea.

Chinese Foreign Ministry spokesman Geng Shuang, asked Monday about the Journal's report, referred the questioner to Cambodia's denials.

"What I want to say is that China and Cambodia are traditional friendly neighbours,'' he said.