Harvard University has agreed to pay $500m to end its feud with the Trump administration, the US president claimed.

Donald Trump said he “reached a deal” with the university after cutting billions of dollars in funding and launching a series of investigations into the Ivy League university.

Speaking to reporters in the Oval Office, Mr Trump said the deal was nearly complete and just needed a sign-off from Linda McMahon, the education secretary.

“All you have to do is paper it, right?” Mr Trump said, before adding: “It’ll be great.”

Pressed for further details on the agreement, Mr Trump said the deal includes a $500m payment from Harvard that would be used to create “a giant trade school, a series of trade schools that would be run by Harvard”.

“We’re in the process of getting very close, Linda’s finishing up the final details, and they’d be paying about $500m,” he said. “And they’ll be operating trade schools, and they’ll be teaching people how to do AI and lots of other things. Engines, lots of things.”