Sept 17 (Reuters) - The U.S. national security panel

reviewing Nippon Steel's ( NISTF ) bid for U.S. Steel will

let the companies refile their application for approval of the

deal, a person familiar with the matter said, delaying a

decision on the deal until after the presidential election.

The move offers a ray of hope for the companies, whose

deal appeared set to be blocked when the Committee on Foreign

Investment in the United States (CFIUS) alleged on Aug. 31 the

transaction posed a risk to national security by threatening the

steel supply chain for critical U.S. industries.

CFIUS needs more time to understand the impact of

national security and engage with the parties, the person said.

Refiling sets a new 90-day clock to review the proposed tie-up

and make a decision.

The expected demise of the deal in late August prompted

an outpouring of support, including a letter from business

groups including the U.S. Chamber of Commerce, raising concerns

the transaction was being influenced by political pressure.

Earlier in September, Vice President and Democratic

presidential candidate Kamala Harris said at a rally in

Pennsylvania, the swing state where U.S. Steel is headquartered,

that she wants U.S. Steel to remain "American owned and

operated."

Her Republican rival Donald Trump has pledged to block the

deal if elected.

Nippon Steel ( NISTF ) declined to comment. CFIUS and U.S. Steel did

not immediately respond to requests for comment from Reuters.