WASHINGTON - US President Barack Obama on Thursday night said talks with Republican leadership in White House on budget row didn't reach a deal, and they are still working to reach an agreement.

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He made the statement after a meeting with Republican House Speaker John Boehner and Senate Democratic Leader Harry Reid. Boehner and Reid said in a statement they have "narrowed their differences" and "will continue to work through the night" to resolve differences and avert an imminent shutdown of the federal government Friday.

The talks came after a whole day of drama around the budget issue, which saw Republicans push through a stopgap bill in the House that the Democratic controlled Senate said it won't pick up, and Obama said he would veto, while the two sides failed to meet each other half way.