Donald Trump said Harvard University's 'sins are forgiven' if they complete a $500million deal with the White House to open trade schools.

The president said Tuesday that his administration is close to reaching a deal with the Ivy League institution, which it has targeted with a series of investigations and billions of dollars in funding cuts as it presses for changes to its policies and governance.

Trump initially said a deal had been reached but then said officials were 'close to finalizing' the agreement. 'We haven´t done it yet,' he said at the White House.

Trump said the agreement includes a $500 million payment from Harvard that would be used to create 'a giant trade school, a series of trade schools that would be run by Harvard.'

The president described it as an investment to revive trade schools and produce workers for American plants.