The United States is close to a deal with Egypt's new government for $1 billion in debt relief as part of a U.S. and international assistance package designed to prop up the country's faltering economy and aid its transition to democracy.

A team of senior U.S. diplomats has spent the last week in Cairo finalizing the agreement, which has been delayed by Egypt's political turmoil and caution in Washington about rewarding its newly elected Islamist leadership. Egypt's debt to the U.S. exceeds $3 billion.

Senior American officials said Monday a final announcement is expected later this month.

The negotiations come as a trade delegation with representatives from more than 40 U.S. businesses considering investment in Egypt is set to arrive at the end of the week.

Egypt's Muslim Brotherhood-backed president, Mohamad Morsi, has said his first priority is to create jobs and shore up the country's struggling economy, which took a huge hit following the chaos of the 2011 revolution.

Two weeks ago, Mr. Morsi asked the International Monetary Fund for a $4.8 billion loan package. Saudi Arabia and Qatar have provided emergency support and China offered a $200 million loan.

Under ousted president Hosni Mubarak, Egypt was one of America's top security partners in the Arab world and received an annual $1.3 billion in military aid.

While these programs have continued, much of Washington's non-military aid for Egypt was put on hold after the January and February 2011 uprising that toppled Mubarak.

U.S. funding for pro-democracy civil society groups in Egypt led to a crisis at the end of last year when Egyptian security officials raided the offices of several organizations, arresting their staff and accusing them of attempting to undermine the government.

But American and Israeli officials have since sought to assure U.S. congressional leaders that ensuring stability in Egypt at a time of turmoil and change across the Middle East is vital to Western interests.