The head of MI5 has said he has “no reason to think” that the UK’s intelligence-sharing arrangements with the US would suffer if Britain uses Huawei technology in its 5G network.

Sir Andrew Parker’s comments increased speculation last night that the Government is on the brink of announcing that the Chinese telecoms giant will be allowed to bid for “non core” elements of nationwide 5G infrastructure.

A delegation of senior US officials arrives in London today to lobby against Huawei being given any role in a coming upgrade of ultra-fast 5G amid concerns that it could give China the ability to spy on Britain.

With a decision on Huawei expected this month, Washington has repeatedly warned Britain that intelligence-sharing could be undermined if Chinese technology is allowed in.

Theresa May’s government decided that Huawei, which is seen as offering the best value for money for taxpayers, did not represent a security risk as long as its contribution to infrastructure was restricted.

Sir Andrew, who is due to stand down as director general of MI5 in April, appeared to agree with that view in an interview with the Financial Times.

He said the “five eyes” intelligence-sharing links between Britain, the US, Canada, Australia and New Zealand were “the strongest they’ve been” and that the US-UK partnership was “very close and trusted”, adding: “It is, of course, of great importance to us. And, I dare say, to the US too, though that’s for them to say. It is a two-way street.”