We appreciate the leadership that the UK shows in the Alliance, and we count on leadership also in the future, Mr Stoltenberg said.

In the same press release, Nato said he would be meeting Michael Fallon to ensure important decisions from the Wales summit last year were being implemented.

A central outcome of the summit was a promise for all European allies to recommit to spending 2 per cent of their GDP on defence a long-standing obligation.

At the time the Prime Minister called on those countries below the mark to meet the obligation within a decade and signed a pledge saying Britain would aim to continue to hit the 2 per cent mark.

In a separate development, Mr Cameron appeared to admit the difficulty in justifying why a government should protect aid spending during austerity while not ring-fencing defence.

Pushed by the Financial Times on how the Prime Minister could say defence was more about deployability of forces than raw spending numbers while enshrining legal aid spending in law, Mr Cameron reportedly said: Its a fair point.

No 10 spokesperson said of the meeting between Mr Cameron and Mr Stoltenberg: The Prime Minister explained that the UK would continue to meet the 2 per cent target this financial year and next, but decisions beyond this would be made in the next Spending Review.

The Secretary General said he appreciated the UKs leadership within the Alliance and that the Government was using its defence spending to focus on investment in new capabilities."

Last month two former Nato heads warned that Mr Cameron will embolden Mr Putin and Islamic terrorists if he reneges on a commitment to spend two per cent of GDP on defence.

Anders Fogh Rasmussen, who left the post as Nato general secretary last year, and his predecessor Jaap de Hoop Scheffer said cutting defence after the election would strength Britains enemies.

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Nato head tells David Cameron: We are counting on your leadership