Silicon Valley tech giant Oracle is "very close" to sealing a deal to become the US partner to Chinese-owned video app TikTok to avert a ban in the United States, President Donald Trump said Tuesday.

Trump's comments came a day after US officials confirmed that Oracle was set to make a deal with TikTok parent ByteDance ahead of a deadline set by the US president, who has called the app a national security threat.

"I heard they're very close to a deal," Trump told reporters, adding that "we're going to make a decision pretty soon" on whether to approve the tie-up, which would make Oracle a "trusted technology provider" for TikTok.

Details of the deal remained unclear. But the Financial Times reported that ByteDance was to place TikTok's global business in a new US-headquartered company with Oracle investing as a minority shareholder along with other US investors.

The popular video app TikTok was scrambling to structure a partnership deal to avert a shutdown in the United States, where President Donald Trump has called the service a national security threat The popular video app TikTok was scrambling to structure a partnership deal to avert a shutdown in the United States, where President Donald Trump has called the service a national security threat Photo: AFP / NICOLAS ASFOURI

CNBC reported the Trump administration could approve the deal as soon as Tuesday afternoon.

If the transaction happens, it would avoid an outright sale of TikTok while giving a stake in the popular app to Oracle, whose founder Larry Ellison is a prominent Trump supporter.

Trump told reporters Tuesday he had "high respect for Larry Ellison."