Afghanistan, economic recovery and the Gulf of Mexico oil spill were on the agenda as they met after arriving in Toronto, Canada, for the G20 Summit.
The two leaders agreed that they had a common approach to securing strong, sustainable growth in the world economy and that a strong political strategy is needed in Afghanistan to complement the military campaign.
Following the meeting, the PM said:
We are aiming at the same target, which is world growth and stability, but those countries with big deficits like ours have to take action in order to keep that level of confidence in the economy which is absolutely vital for growth.
President Obama emphasised the importance of the relationship between the US and the UK and said he was impressed with the leadership Mr Cameron has shown since taking office.
We already have established a strong working relationship and we are confident that that special relationship is going to get stronger in the months and years to come.
A Downing Street spokesman added:
The Prime Minister also raised BP. The leaders agreed that BP should meet its obligations to cap the leak, clean up the damage and meet legitimate compensation claims. They also agreed that it was to both countries’ advantage for BP to remain a strong and stable company. The leaders emphasised their firm commitment to the UK/US relationship and looked forward to the Prime Minister’s July visit to Washington.
Mr Cameron and President Obama also exchanged bottles of beer following a bet they had made ahead of England’s World Cup clash with the USA earlier this month. They had agreed that whoever backed the losing side would buy a beer for the other.
They both travelled to Toronto to attend the G20 after spending two days in nearby Muskoka at the G8 Summit.
Speeches and transcripts: Meeting with President Obama