Cleveland-Cliffs is partnering with peer Nucor to prepare a potential bid for U.S. Steel, CNBC reported on Monday, citing sources.

According to the report, Cleveland-Cliffs would purchase U.S. Steel in an all-cash deal and then sell the company's Big River Steel subsidiary to Nucor.

U.S. Steel's headquarters would remain in Pittsburgh under the deal, the CNBC report said.

A Nucor Corporation steel production facility is pictured in Convent, Louisiana, U.S. REUTERS/Jonathan Bachman

Shares of U.S. Steel rose 8.9% in afternoon trading.

The report came after the Biden administration delayed an order for Nippon Steel to abandon its $14.9 billion bid for U.S. Steel until June.

Nucor declined to comment, while Cleveland-Cliffs, U.S. Steel and Nippon did not immediately respond to Reuters' requests for comment.