Dec 31 (Reuters) - Japan's Nippon Steel ( NISTF ) has

proposed giving the U.S. government veto power over any

potential cuts to U.S. Steel's production capacity, as

part of its efforts to secure President Joe Biden's approval for

acquiring the American steelmaker, a source familiar with the

matter said on Tuesday.

Last week, the Committee on Foreign Investment in the United

States (CFIUS) referred the decision to approve or block the

deal to Biden.

Biden, who will leave office on Jan. 20, must decide on the

deal by Jan. 7. If he takes no action, it would result in the

merger's automatic approval.

"We received the CFIUS evaluation and the President will

review it," a White House spokesperson said on Tuesday.

The Washington Post reported earlier that in its proposal,

Nippon Steel ( NISTF ) pledged a 10-year commitment not to cut production

capacity at U.S. Steel's domestic mills, unless approved by a

Treasury-led review panel.

U.S. Steel and Nippon Steel ( NISTF ) did not immediately respond to

Reuters' requests for comment.