The White House has announced that US companies will now control TikTok's algorithm and Americans will hold six of seven board seats for the app's US operations in a much-anticipated deal with China.
Press secretary Karoline Leavitt said a deal could be signed 'in the coming days', but Beijing is yet to comment.
The US has sought to take the video-sharing app's US operations away from Chinese parent company ByteDance for national security reasons.
TikTok was previously told it had to sell its US operations or risk being shut down.
But US President Donald Trump delayed implementing the ban four times since it was first announced in January, and earlier this week extended the deadline again to December.
Leavitt stated that data and privacy for the app in the US will be led by tech giant Oracle, which is chaired by Larry Ellison, one of the world's richest people and a Trump ally.
'The data and privacy will be led by one of America's greatest tech companies, Oracle, and the algorithm will also be controlled by America as well,' she told Fox News. 'So all of those details have already been agreed upon. Now we just need this deal to be signed.'
Trump mentioned that he and Chinese President Xi Jinping approved a deal during a phone call, although there was no confirmation from Beijing.
On Saturday, China's Commerce Ministry issued a statement emphasizing the need for negotiations to be in accordance with market rules, balancing interests and compliance with Chinese laws.
A major point of contention has been ownership of TikTok's powerful algorithm, essential for its 170 million American users.
While Trump initially pushed for a TikTok ban during his first term, he has since shifted strategy to leverage the platform for support among younger Americans in his 2024 presidential campaign.
In January, the US Supreme Court upheld a law banning TikTok unless ByteDance divested from its US operations, leading to a brief shutdown before the implementation was delayed.
The US Department of Justice has flagged concerns about TikTok's access to American user data as a significant national security threat.