TOKYO, Feb 10 (Reuters) - Japan's Nippon Steel ( NISTF )

is considering proposing a bold change in plan from its previous

approach of seeking to buy U.S. Steel, Chief Cabinet

Secretary Yoshimasa Hayashi said on Monday, though the company

declined to comment.

"We are aware that Nippon Steel ( NISTF ) is not looking at this

as a mere acquisition, but is considering a bold proposal that

is completely different from anything it has done in the past,"

Hayashi told reporters.

Hayashi said it would create a win-win situation for both

Japan and the U.S. through significant investments and the

production of high-quality products demanded by the U.S. and

global markets.

On Friday, U.S. President Donald Trump said Nippon Steel's ( NISTF )

$14.9 billion bid for U.S. Steel would take the form of an

investment instead of a purchase. Two people familiar with the

matter said the biggest Japanese steelmaker had not withdrawn

its bid.

Nippon Steel ( NISTF ) declined to comment on Hayashi's comment as

well as Trump's latest statement that no one can have a majority

stake in U.S. Steel.

Trump made the comment on Sunday when speaking to reporters

on Air Force One. He also said the U.S. will impose 25% tariffs

on all steel and aluminium imports on top of existing duties,

and that he will announce the new metals tariffs on Monday.

Shares in Nippon Steel ( NISTF ) fell 1.5% by midday on Monday,

compared with a 0.1% decline in the Nikkei index.

LONG PURSUIT

Nippon's pursuit of U.S. Steel has stretched on for more

than a year, with Trump condemning the proposal on numerous

occasions, before Friday's more tempered remarks at the Oval

Office with Japanese Prime Minister Shigeru Ishiba at his side.

It was unclear if the investment referred to a new deal

structure or what the details of the transaction would be, but

Trump said on Friday he would meet with the head of Nippon Steel ( NISTF )

this week and he would be involved "to mediate and arbitrate".

Nippon Steel ( NISTF ) Vice Chairman Takahiro Mori last Thursday said

the Japanese company had no plan to change the acquisition

structure.

Ishiba, on returning from the U.S., told broadcaster Nippon

TV on Sunday that there are legal questions regarding the

distinction between acquisition and investment, including the

extent of stock ownership.

He said such details are likely to be discussed between

Trump and Nippon Steel ( NISTF ).

"The key point is whether Americans will feel that U.S.

Steel will remain an American company," Ishiba said.

Nippon Steel ( NISTF ) on Monday declined to issue a statement on

Ishiba's comments or any management meeting with Trump.

Nippon Steel's ( NISTF ) bid for U.S. Steel is central to the Japanese

company's global expansion plan. It was blocked last month by

then-U.S. President Joe Biden, citing national security.

The firm, together with U.S. Steel, filed a number of

lawsuits challenging Biden's decision.