U.S. President Barack Obama Tuesday afternoon signed a bipartisan bill of raising the nation`s debt limit into law, ending the month-long perilous stalemate and averting a potentially catastrophic debt default risk, according to Xinhua.

Obama signed the bill into law less than two hours after the measure cleared the U.S. Senate with a vote of 74 to 26.

Obama announced Sunday night that he had reached a last-ditch debt ceiling deal with Republican and Democratic congressional leaders.

The plan aimed at slashing deficit for more than 2 trillion U.S. dollars over the next decade, setting up a powerful new congressional bipartisan committee to find new ways on deficit cutting, and raising the U.S. borrowing limit through 2013.