Britain has rejected a U.S. proposal to help solve the dispute over the Falkland Islands (known to Argentineans as the Malvinas) between Britain and Argentina, local media reported on Tuesday.

During her visit to Argentina, U.S. Secretary of State Hillary Clinton has offered to help the two nations with negotiations concerning their competing claims to sovereignty over the Falkland Islands.

"If we can be of any help in facilitating such an effort, we stand ready to do so," she said.

However, a spokesman for British Prime Minister Gordon Brown said: "We welcome the support of the secretary of state in terms of ensuring that we continue to keep diplomatic channels open but there is no need for direct involvement."

He stressed that self-determination of Islanders is the key issue and Britain believed the oil drilling was "both the right thing to do and is entirely legitimate."

Argentina objected to a recent oil-drilling exploration by a British oil company off the Falkland Islands, and has requested that all ships from the Falklands obtain permits to dock in Argentina. Britain has rejected Argentina's claims.

Argentina and Britain have been at odds over the sovereignty of the islands for decades, and their dispute led to a short yet bloody war in 1982.

Tensions between the two nations have resurfaced since Britain announced it would begin exploring the waters around the disputed islands for oil.