The new parameters follow Trump's coveting of the strategic, mineral-rich Arctic island even as the U.S. and Denmark are NATO allies.
Danish Foreign Minister Lars Løkke Rasmussen, in a response to lawmakers' questions, wrote that Denmark would be able to terminate the agreement if the U.S. tries to annex all or part of Greenland.
Ninety-four lawmakers voted for the bill, with 11 against. The legislation now goes to Danish King Frederik X for his signature.
Greenland's prime minister previously said U.S. statements about the island have been disrespectful and it "will never, ever be a piece of property that can be bought by just anyone."