WASHINGTON - U.S. President Donald Trump says the United States is close to a "big Trade Agreement" with Mexico and he's citing improving ties between the two countries.

the U.S.-Mexico relationship with Mexico "is getting closer by the hour" and he says a trade deal "could be happening soon!"

He's spoken of better relations with America's neighbour following the rise of Mexican President-elect Andres Manuel Lopez Obrador.

The U.S. and Mexico have been discussing a trade deal as part of negotiations over the North American Free Trade Agreement. The Trump administration is seeking a revised version of that trade deal with Mexico and Canada.

Trump's relationship with Mexico has been strained over his push for it to pay for his border wall.