By Agencies

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The US Senate has cleared a deal to avoid a federal shutdown, approving a spending bill worth more than $1 trillion to fund the government through fiscal year 2012.

Senators voted 67 to 32 on Saturday to approve the bill, which after passage by the House of Representatives now goes to President Barack Obama's for his signature.

The bipartisan omnibus bill, including the $915bn bill approved by the House plus another $126.5 billion for overseas contingency operations mainly for the military, "represents a victory for compromise, a victory for American taxpayers, and a victory for the appropriations process," Senate Appropriations Committee chairman Daniel Inouye said.

Saturday also saw the Senate approve a two-month extension of a payroll tax cut and jobless benefits, was aimed at preventing public buildings and government agencies from going dark after running out of money.

The move came after days of heated negotiations to break the impasse, one driven by pre-positioning for President Barack Obama's 2012 re-election bid and deep antipathy between his Democratic Party and their rival Republicans.

The root of the stalemate lay in brinkmanship by both parties over a White House push for a $1,500 tax cut for 160 million workers and a Republican bid to force Obama to reconsider delaying a decision on a Canada-US pipeline plan.