The United Arab Emirates, currently at the centre of a row over foreign ownership of US 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 the US President, George W Bush.
The White House has welcomed the move by Dubai World Ports, saying it should defuse the standoff.
A statement from the company was dramatically delivered by Republican senator John Warner during a Senate debate last night.
It is far from clear if that means the company will offload ownership of the ports completely or just making a US company responsible for their day-to-day running.
Either way it 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.
