Earlier this month, ZTE had urged the Trump administration to give a stay on its order that banned it from acquiring American companies.
"President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast'', Trump said in a tweet.
"Too many jobs in China lost. Commerce Department has been instructed to get it done!" tweeted Trump.
The Wall Street Journal described it as the US giving a lifeline to the sanctioned ZTE.
"The intervention comes less than a month after the Shenzhen-based firm was hit by the ban. The company said the ban threatens its survival, and last week said it had ceased major business operations'', the daily said.
ZTE has been at the center of the trade dispute between the US and China since it was hit with the sales ban last month for violating the terms of a settlement resolving evasion of US sanctions against Iran and North Korea
"Chinese officials raised the issue of the ban last week during a visit to China by a US trade delegation'', daily reported.
(With inputs from agencies)