US President Donald Trump said on Thursday that his administration is close to reaching a settlement with Harvard University, following months of legal and political wrangling over funding cuts and restrictions on international students.

In a post shared on his social media platform, Truth Social, Mr Trump stated that negotiations between the federal government and the Ivy League institution had made “significant progress” and hinted that an agreement could be finalised “within the next week”.

“If a settlement is made on the basis that is currently being discussed, it will be ‘mindbogglingly’ HISTORIC, and very good for our Country,” wrote Mr Trump. He also noted that certain individuals at Harvard “have acted extremely appropriately during these negotiations” and appeared committed to doing what is right.

The dispute stems from a series of federal actions taken against Harvard over the past year. These include the freezing of approximately $2.5 billion in federal grants and the Department of Homeland Security’s move to block the university from enrolling international students under the Student and Exchange Visitor Programme.

The Trump administration has accused Harvard of failing to address allegations of antisemitic harassment on campus and claimed the institution had resisted government efforts to influence its internal policies, including faculty ideology and curriculum content. The university has denied the accusations and filed lawsuits asserting that the administration’s actions were retaliatory and infringed upon its First Amendment rights.

Harvard contends that the funding cuts and visa restrictions were politically motivated, and that it is being targeted for resisting government pressure on academic governance and free speech issues.

The legal battle reached a critical point earlier this week when US District Judge Allison Burroughs issued an injunction blocking the Department of Homeland Security from immediately revoking Harvard’s certification to admit international students. The injunction requires the government to undergo a months-long administrative process before taking further action.

In a brief statement issued on Thursday, Harvard said it welcomed Judge Burroughs’ decision and would “continue to defend its rights — and the rights of its students and scholars.”

The university, based in Cambridge, Massachusetts, has filed two separate lawsuits aimed at unfreezing federal funding and halting implementation of an executive proclamation signed by Mr Trump that bars certain foreign nationals from studying at the institution.

Judge Burroughs is expected to rule shortly on Harvard’s request to extend the injunction against the proclamation.

International students account for roughly 25 per cent of Harvard’s student population, and the outcome of the case could have significant implications for student mobility and university funding across the United States.

There was no immediate comment from Harvard regarding the status of the negotiations hinted at by Mr Trump. However, university officials have previously described the administration’s actions as “unprecedented” and “deeply concerning” for academic independence.