The U.S. military said it has made a final decision to cancel $300 million in aid to Pakistan that had been suspended over Islamabad's perceived failure to take decisive action against militants, in a new blow to deteriorating ties.

The so-called Coalition Support Funds were part of a broader suspension in aid to Pakistan announced by U.S. President Donald Trump at the start of the year, when he accused Pakistan of rewarding past assistance with "nothing but lies & deceit."

The Trump administration says Islamabad is granting safe haven to insurgents who are waging a 17-year-old war in neighboring Afghanistan, a charge Pakistan denies.