The Middle Eastern country at the centre of a political row in the US over foreign ownership of its ports has said it will transfer ownership to what is described as an American entity.
The deal had sparked a revolt by the Republican party in Congress against President George Bush.
The White House has welcomed the move by Dubai World Ports, saying it should defuse the standoff.
It was during a Senate debate on the Dubai-World Ports Debate last night, that a statement from the company was dramatically delivered by Republican senator, John Warner.
The company, owned by the Government of the United Arab Emirates, said it would transfer ownership of the six ports in the Us its about to acquire to what was described as a US entity.
However, it is still far from clear if that means the company will offload ownership of the ports completely or just make a US company responsible for their day to day running.
Either way the statement has provided a respite for Mr Bush who has been battling his own party on security fears surrounding the ports.
On Wednesday night, a powerful House committee voted to block the deal and the Senate seemed set to follow until the complained interjection last night. This was despite the President threatening to use his veto powers for the first time in his Presidency.
DP World said its takeover of P&O had been completed yesterday, with the British port operator's shares de-listed from the London stock market.
