Donald Trump said he supports a deal that will allow TikTok to continue to operate in the United States, after threatening to ban the Chinese-owned app in August.
The US president said he backs the deal with Oracle and Walmart that would see the creation of a new company that will assume TikTok's US operations.
Mr Trump said the new TikTok company will be "totally controlled by Oracle and Walmart. All of the control is Oracle and Walmart."
He offered strong support for the deal he said would create 25,000 US jobs.
"I think it's going to be a fantastic deal. I have given the deal my blessing," he said. "I approve the deal in concept. If they get it done that’s great, if they don’t that’s fine too.”
About 100 million Americans use TikTok and US officials have expressed concern about user data and the potential for China to access that data.
"The security will be 100 per cent," Mr Trump said.
He said it will be located "most likely in Texas".
Oracle and Walmart are expected to take significant equity stakes and ByteDance - TikTok's parent - has agreed to significant security safeguards on the data of US users with Oracle housing all data and getting the right to inspect the TikTok source code.
TikTok, Oracle and Walmart did not immediately comment.
Mr Trump has been demanding that TikTok, a video app popular with young people, be sold to a US company or else its US operations would be shut down.
He has also been targeting WeChat, another Chinese-owned app. The dispute over the two apps is the latest flashpoint in the rising tensions between the world's two largest economies.
The US Commerce Department had said it would ban TikTok from US app stores from late on Sunday.
Texas Governor Greg Abbott said he had talked to Mr Trump about the deal.
Mr Abbott said: "I let him know that if he approves the deal Texas would be the perfect place for the HQ."