Panama has insisted that its sovereignty over the Panama Canal is "non-negotiable" after US President-elect Donald Trump refused to rule out military force to seize it.
Trump made the remark during a news conference on Tuesday at which he also falsely stated that the Panama Canal was being operated by Chinese soldiers.
Panama's Foreign Minister Javier Martínez-Acha responded by saying that "the only hands operating the canal are Panamanian and that is how it is going to stay".
The Panama Canal was managed by the US for decades, but under a treaty signed by the late US President Jimmy Carter in 1977, it was handed over to the Panamanians on 31 December 1999.
In his news conference at Mar-a-Lago on Tuesday, Trump described President Carter's decision to hand the canal back as "a big mistake".
He also expressed renewed interest in buying the Arctic island of Greenland - which is a self-governing territory of Denmark - as well as the Panama Canal.
Pressed by journalists on whether he would rule out using military or economic force to acquire Greenland and the Panama Canal, he said: "No, I can't assure you on either of those two."
Panama's foreign minister denied his country had received any kind of offer from the president-elect.
"Trump's opinions today, that he has talked about a certain amount of money, are not true. No kind of offer has been received, let it be clear," Martínez-Acha said.
He added that "our canal's sovereignty is not negotiable and is part of our history of struggle and an irreversible conquest".
Panama's president, José Raúl Mulino, has not yet reacted directly to Trump's latest remarks.
But at a colourful ceremony marking the 25th anniversary of the handover of the canal to Panama held on 31 December, he told attendees to "rest assured, it will stay in our control forever".
President Mulino has in the past appeared exasperated by Trump's claims that the canal is under some sort of Chinese influence, saying "there are no Chinese soldiers in the canal, for the love of God".
His government also stressed that "until 20 January, the US government is led by Joe Biden. From 20 January we will deal with Mr Trump and his government".
"Panama is keen to co-operate and maintain excellent relations with the different governments."