But the head of Palau's negotiating team, Joshua Koshiba, said the offer to take the Chinese detainees was "a positive for the negotiation" on the compact.
"I can point my finger at them now and say, 'See, we are helping you too, without asking for help only,"' Koshiba told AP.
If the U.S. doesn't agree to Palau's new terms, Koshiba said, his country will weigh its options.
"When you have a friend, if they don't want to be your friend anymore, what do you do? Don't you look for another friend?" Koshiba said.
Mark Bezner, the top U.S. official in Palau who will also take part in the talks, called the extension request "a radical departure" from previous discussions but said Washington would consider any proposal made by the Palauans. Story here.