US President Barack Obama says Republican and Democratic leaders have reached an agreement on raising the US debt limit and avoiding default.
But Congress still has to approve the deal, and with votes in both houses expected on Monday.
The parties face a Tuesday deadline to raise the $14.3tn (£8.7tn) debt limit.
"I want to announce that the leaders of both parties in both chambers have reached an agreement that will reduce the deficit and avoid default, a default that would have had a devastating effect on our economy," Mr Obama said.
The US president said it was not the deal he would have preferred, but noted that the compromise plan would make a "serious downpayment" on the US deficit.
From the BBC
