A DEAL to rescue British Steel safeguarding thousands of jobs is hoping to be concluded "as quickly as possible" it has been claimed.

A weekly meeting, with Business Secretary Greg Clark, British Steel representatives , trade unions and local politicians, held this morning heard a number of bids are being worked on and the mood remains "positive" that a buyer can be found.

Britain's second-largest steel producer, which employs thousands of workers, including 700 in the North East at sites in Lackenby and Skinningrove, went into liquidation in May after rescue talks with the Government collapsed.

Tees Valley Mayor Ben Houchen said the Government will continue to keep the indemnity in place - meaning British Steel will continue to operate as normal.

He also said Boris Johnson has confirmed that if he becomes PM next week, the indemnity will remain in place

Transport for London is also understood to be delaying a tender for steel for new trail tracks to give British Steel the opportunity to bid for the contract.

Mr Houchen said: "The Official Receiver - the person appointed by the High Court to find a new buyer - is hoping to conclude a deal as quickly as possible. However regulatory approvals and necessary due diligence will take time.

"A number of bidders are on-site in Scunthorpe and Teesside doing detailed due diligence. This is a positive step forward.

"No deadlines have been given, and the Government will continue to keep the indemnity in place - meaning British Steel will continue to operate as normal. Boris Johnson has also confirmed that if he becomes PM next week, the indemnity will remain in place.

"The Official Receiver will communicate with British Steel employees today. The update will confirm that a number of bids are being worked on and the mood remains positive.

"I can confirm that Transport for London is delaying a tender for steel for new rail track to give British Steel the opportunity to bid. I’ll be pushing this behind the scenes over the coming days and weeks.

"British Steel’s customers have been exceptionally helpful. Orders are still being placed and the company’s production pipeline remains healthy.

"As with all previous updates, the Government is continuing to bankroll the company. No job losses have been announced and none are planned. Workers and apprentices are still being paid and will continue to be paid."

Redcar MP Anna Turley added: “All efforts continue to be made to find a buyer and the prospects of doing so continue to look positive.

“The time frame is obviously urgent but everyone is conscious of the need to get this right so that it will work for the business and the industry in the longer term.

“Media speculation over the weekend around potential deadline is inaccurate and unhelpful. Confidence in the likelihood of a good buyer is high and all of the necessary time and resources are being made available to carry this process out properly.

“The workforce continue to be exceptional in their efforts and suppliers and buyers to British Steel have been very accommodating and supportive too.”