The United States president Joe Biden and Republican Kevin McCarthy have reportedly reached a "tentative" agreement to raise the federal government's $31.4 trillion debt ceiling.

According to a May 28 Reuters report, which cited two sources familiar with the negiotations, the agreement is said to have been reached after a 90-minute phone call between Biden and McCarthy on May 27.

"The White House and negotiators for House Republicans have reached an agreement in principle to avert a debt default," the sources stated.

However, one source reported that there are still a few components of the deal to be finalized, stating:

"But, I’m not sure it’s completely settled. Might be one or two small things they need to finish. But close enough to move forward."

It was reported that the deal would prevent an "economically destabalizing default." It was emphasized that the deal must be passed through Congress before the Treasury "runs short of money" – which it was recently warned would occur on June 5 if the debt ceiling is not raised.

"The exact details of the deal were not immediately available" it was added.

This is a developing story, and further information will be added as it becomes available.