Sir Keir Starmer and Donald Trump agreed to meet “soon” in their first phone call since the US president’s inauguration.
In the 45-minute call, Sir Keir praised the US president for his “role in securing the landmark ceasefire and hostages deal in Gaza”, Downing Street said.
The two leaders held talks on trade and the economy after the president praised the UK Prime Minister for having done "a very good job thus far" and saying they had "very good relationship".
In a readout of the call, a No 10 spokesperson said Trump sent his condolences to the Prime Minister on the loss of his brother last month, while Sir Keir congratulated him on his inauguration.
The spokesperson said Sir Keir “paid tribute to President Trump's role in securing the landmark ceasefire and hostages deal in Gaza,” while Trump welcomed the release of British-Israeli hostage Emily Damari.
"They also discussed trade and the economy, with the Prime Minister setting out how we are deregulating to boost growth,” the spokesperson said.
"The two leaders stressed the importance of the close and warm ties between the UK and the US, and the president spoke of his respect and affection for the royal family.
"They agreed to meet soon and looked forward to further discussions then."
The talks came after Mr Trump offered warm words for Sir Keir despite a series of attacks from X owner Elon Musk, a key member of the president's inner circle.
The tech entrepreneur has used his platform to criticise the Prime Minister and safeguarding minister Jess Phillips over the issue of grooming gangs.
But the president told reporters on Air Force One that he and Sir Keir "get along well" despite the difference in their political views, and that they were due to have a call this weekend.
"I like him a lot," Mr Trump said.
"He's liberal, which is a bit different from me, but I think he's a very good person and I think he's done a very good job thus far.
"He's represented his country in terms of philosophy.
"I may not agree with his philosophy, but I have a very good relationship with him."
The president added that the UK was being considered as the destination for the first international trip of his second term.
Sir Keir most recently met Mr Trump at Trump Tower in New York during the presidential campaign.
The pair also spoke on the phone after Mr Trump's election victory, with Downing Street saying both men agreed the relationship between the UK and the US was "incredibly strong" and would "continue to thrive".
After Mr Trump's inauguration on January 20, Foreign Secretary David Lammy indicated Sir Keir would visit Washington within weeks.