US President Donald Trump has announced a "planned partnership" between US Steel and Japan's Nippon Steel, signaling possible approval for the Japanese company's acquisition of the iconic American steelmaker.

"I am proud to announce that, after much consideration and negotiation, US Steel will remain in America and keep its headquarters in Pittsburgh," Trump wrote in a post on Truth Social on Friday.

He emphasized that the partnership would generate at least 70,000 jobs and inject $14 billion into the US economy, with most of the investment expected within the next 14 months.

Nippon Steel described the partnership as a "game changer" for US Steel and its stakeholders, including the American steel industry and the broader manufacturing sector.

US Steel, in a separate statement, said it expects to grow bigger and stronger through the partnership, expecting it to bring massive investment, new technologies and thousands of jobs over the next four years.

US Steel's share price closed at $52.01 on Friday, marking a 21.24 percent increase.

Nippon Steel's planned acquisition of US Steel has been a point of contention?since the deal was first proposed in December 2023. On Jan 3, then-US President Joe Biden issued an executive order blocking the deal, citing national security concerns. In response, both companies filed a lawsuit on Jan 6, accusing Biden of unlawful political interference in the review of the deal.