The "temporary general license" will be extended for Huawei for 90 days, Reuters has found out.

The department initially allowed Huawei to buy some American-made goods in May shortly after blacklisting the company in a move aimed at minimising disruption for its customers, many of which operate networks in rural America.

An extension will renew an agreement set to lapse on August 19, continuing the Chinese company's ability to maintain existing telecommunications networks and provide software updates to Huawei handsets.

The situation surrounding the license, which has become a key bargaining chip for the United States in its trade negotiations with China.