U.S. Senate leader said on Wednesday that a bipartisan deal is reached to raise the debt ceiling and reopen the federal government.

"This compromise we reached will provide our economy with the stability it desperately needs," said Senate Majority Leader Harry Reid on the Senate floor.

"This has been a long challenging few weeks for Congress and for the country. It is my hope that today we can put some of those most urgent issues behind us," said Senate Minority Leader Mitch McConnell.

The bipartisan deal would lift the debt limit through Feb. 7 and fund the federal government through Jan. 15. It would also establish a joint committee to discuss broader fiscal reforms, which must report to the Congress by a certain date.

U.S. President Barack Obama welcomes the Senate deal, White House spokesman Jay Carney said at the White House press briefing.

"The President applauds leader Reid and Minority Leader McConnell for working together to forge this compromise and encourages the Congress to act swiftly to end this shutdown and protect the full faith and credit of the United States of America, " said Carney.

He added that Obama wants the Congress to act "as soon as possible."

The House Republicans are expected to hold a meeting on Wednesday afternoon to discuss the Senate budget deal.

With the clock ticking toward a Thursday deadline, it is still to be seen whether the Republican-controlled House would endorse the Senate deal to facilitate the final congressional approval of the bipartisan proposal.