Nippon Steel Corp has promised it will not cut output capacity at United States Steel Corp's mills for 10 years, in its latest proposal to the administration of President Joe Biden aimed at winning approval to acquire the struggling producer, a media report said.

The Washington Post said the Japanese steelmaker sent its proposal to the White House on Monday after a panel of U.S. federal agencies failed to reach consensus on whether to approve the $14.1 billion sale of U.S. Steel to Nippon Steel, leaving the final decision to Biden.

The two steelmakers said last week they were informed by the Committee on Foreign Investment in the United States that it could not come to an agreement on the deal.

The panel, also known as CFIUS, is chaired by Treasury Secretary Janet Yellen. It is responsible for examining whether foreign investment transactions involving U.S. companies threaten national security.

Biden, who leaves office on Jan 20, and President-elect Donald Trump have both publicly opposed the deal announced by Japan's biggest steelmaker and the smaller U.S. producer in December last year.

The Washington Post said Nippon Steel's proposal guarantees not to reduce production capacity at U.S. Steel's mills in Pennsylvania, Alabama, Arkansas, California, Indiana and Texas without CFIUS approval.

Biden, who needs to make a final decision by early next week under CFIUS rules, could give conditional approval for the takeover if Nippon Steel agrees to comply with additional obligations, including the preservation of American jobs, the newspaper said, citing an unnamed U.S. official.

While U.S. government deliberations continue, the report also noted that Biden administration officials for the first time are considering a scenario that would leave a final decision to the incoming Trump administration.

During the 2024 presidential election campaign, Biden and Trump reiterated that U.S. Steel should remain in domestic hands, keeping in step with the leadership of the powerful United Steelworkers union.

U.S. Steel, once an iconic American company, is headquartered in Pittsburgh, Pennsylvania, which was a key battleground state in the Nov 5 presidential election.