U.S. President Donald Trump said on Tuesday his administration is close to finalizing a deal with Harvard University, in an agreement that would potentially defuse one of the highest-profile fights between his administration and U.S. higher education.

"They’ll be paying about $500 million, and they’ll be operating trade schools. They’re going to be teaching people how to do AI, and lots of other things,” Trump said.

The university had signaled last month that they were open to investing roughly that amount in workforce programs as part of a deal with the administration, it was previously reported.