Bloomberg reports that the US government has come to an agreement with the Chinese Tech Company Xiaomi to remove the company from the block list following a lawsuit filed by Xiaomi, earlier this year.

"The Parties have agreed upon a path forward that would resolve this litigation without the need for contested briefing," Bloomberg quoted the filing of the court documents.

Xiaomi was banned by the Trump administration's Department of Defense blaming the company to be controlled by the Chinese military and part of China's "military-civil fusion strategy." Xiaomi fired back with the lawsuit just two weeks later, stating that its two co-founders owned 75 percent of voting rights and that there were no military links to ownership. 

In March, a US court temporarily halted the ban, saying that Xiaomi was likely to win a full reversal. It also issued an injunction to prevent it from suffering "irreparable harm." So far, the Pentagon, Xiaomi and Chinese authorities have yet to comment on the development.