ByteDance has asked TikTok to draw up the US shutdown contingencies, Reuters reported, citing sources familiar with the situation.

US President Donald Trump announced on August 6 a ban on US transactions with ByteDance, the owner of TikTok, amid concerns about the security of users' personal data.

The ban should take effect 45 days after the signing of the decree.

TikTok and a company employee have sued the Trump administration over the banning transaction order, citing it as a pretext to foment anti-Chinese sentiment ahead of the presidential election.

However, TikTok is preparing for a possible halt in US operations if it fails to strike a deal with a potential asset buyer by mid-September, the sources said. The company hopes any closure will be temporary, they added.

US companies vying to acquire TikTok assets include Microsoft Corp and Oracle Corp. Retailer Walmart Inc has announced a partnership with Microsoft to buy TikTok's US assets.

ByteDance intends to begin exclusive talks with the prospective buyer within the next 24-48 hours and sign the deal by September 15th, sources familiar with the matter told Reuters.

The deal must be approved by the US and Chinese authorities. The plan also aims to prepare TikTok's global operations for the possibility that one of the two countries will block the deal, sources said.

ByteDance this week asked the developers of TikTok to develop a plan in case of an app outage in the US, sources said. ByteDance views the preparations for the closure as a back-up plan and is working on a deal that will allow TikTok to continue operating smoothly in the US.