Morrison government ministers are split over whether to tear up a Chinese company’s ownership of the Port of Darwin, amid expectations the US will press the issue in top level talks with Defence Minister Peter Dutton and Foreign Minister Marise Payne in Washington next week.

Sources say a Defence Department review of the 99-year lease between the port’s operator Landbridge and the Northern Territory is likely to find it should be axed, but there is some wariness that the move would inflame tensions with China and even expose Australia to a World Trade Organisation challenge.