WASHINGTON: President Barack Obama will sign an executive order today setting up a bipartisan commission to propose ways to tackle the ballooning US deficit, a senior administration official said yesterday.

Obama will name Erskine Bowles, former chief of staff to President Bill Clinton, and former Republican Senator Alan Simpson to serve as co-chairs of the body, the official said.

Obama, a Democrat, has said he would establish the commission to study options on spending and taxes after lawmakers failed to create a congressional panel on the issue.