Top US congressional Republican Kevin McCarthy told reporters on Thursday that he and President Joe Biden have reached an agreement in principle to raise the debt ceiling ahead of the June 5 deadline.

The deal would avert a debt default, which would have been the first in US history.

US President Joe Biden met with Republican House Speaker Kevin McCarthy on Monday, but the two failed to reach an agreement on a deal to raise the debt limit.

After the meeting with the president, McCarthy said although an agreement was not reached, the two made progress and the talks were productive.

The House Speaker said that the negotiations will continue in an effort to come to some kind of deal on raising the debt ceiling. In a post on social media, the Republican Speaker said there is a path for the president to avoid defaulting on the debt.

US Treasury Secretary Janet Yellen repeated her warning that the US could be unable to pay its bills as soon as June 1.

In her letter sent to the congressional leadership on Monday, she wrote: "we estimate that it is highly likely that Treasury will no longer be able to satisfy all of the government's obligations if Congress has not acted to raise or suspend the debt limit by early June, and potentially as early as June 1."