The government is to consider spending money from the UK's £10bn aid budget on peacekeeping and other defence-related projects, David Cameron has said.
Such a move could see funds diverted from the Department for International Development to the Ministry of Defence.
The PM, who has been urged to cut aid spending by some Tories, said security and stability were often needed before development could take place.
Critics argue that aid money should not be used to compensate for defence cuts.
Mr Cameron has said he intends to protect all £10bn of Britain's aid budget, promising to spend 0.7% of national income on development.
But, speaking to reporters on his return journey from a trade visit to India, the prime minister said he was very open to the idea of the Department for International Development (DfID) sharing more of its money with the Ministry of Defence.
Fragile states"I think we have to demonstrate that the DfID budget is spent wisely," he said. "It is obviously true that if we can help deliver security and help provide stability and help with stabilisation, that is the basis from which all development can proceed."
He added: "DfID and the Foreign Office and the defence ministry work increasingly closely together. If you are asking me can they work even more closely together, can we make sure that the funds we have at our disposal are used to provide basic levels of stability and security in deeply broken and fragile states, then I think we should.
"That is an important part of development."
End Quote Max Lawson Head of policy, OxfamWe cannot see any penny diverted into the military"
"We have our moral responsibilities for tackling poverty in the world. We also have national security responsibilities for mending conflict states and helping with development around the world and we should see DfID in that context," he said.
Officials said hundreds of millions of pounds could be diverted from aid to peacekeeping and stabilisation operations, particularly in fragile states.
The money would not be used for combat missions or equipment and Downing St insisted the plan would comply with international aid spending rules.
BBC deputy political editor James Landale said this shift in priorities would go down well with Conservative MPs and voters who think it was wrong to increase aid while cutting defence.
The question now was what aid projects would be cut to pay for more security operations, he added.
'Hospitals not gunships'Liberal Democrat chairman of the International Development Committee Sir Malcolm Bruce said switching funds from overseas aid to the defence budget would be "outrageous", adding: "You can't use the aid budget to make up for defence cuts."
He conceded there could be "some scope for crossover spending" using the Conflict Pool - a fund administered by the Treasury and to which DfID, the Foreign Office and the Ministry of Defence all contribute.
But he added: "If the prime minister is talking about reducing DfID's control over the budget that would be met with a lot of hostility."
Oxfam's head of policy Max Lawson said the aid budget should be spent on "hospitals and not helicopter gunships".
He told BBC Radio 4's Today programme: "The millions of people up and down the country who support the fantastic stance the government is taking - protecting the aid budget when every other G8 nation is not doing that - they expect this to be spent on schools and not soldiers.
"So we cannot see any penny diverted into the military."
But Tory MP Patrick Mercer, a former Army officer, said security and overseas aid were "inextricably linked".
"So much of the aid we have attempted to spend in the past in places like Iraq and Afghanistan has not been delivered as effectively as it might because of the lack of a benign security environment.
"If that means more money has to be spent on defence in order to increase the efficacy of overseas aid spending, I'm all for it."
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