A White House official told the Wall Street Journal the Turkish government offered to release Andrew Brunson if the US gave relief to a major Turkish bank that is owes the US government billions of dollars in fines.
The unnamed official said the US government rejected the deal and has insisted that Brunson be released before other issues can be discussed.
Earlier this month the White House imposed sanctions on Turkey's ministers of Justice and Interior for the "unfair and unjust" detainment of Brunson.
The 50 year-old pastor from North Carolina, who led a church in Turkey for 20 years, was arrested in October 2016 after the Turkish government accused him of leading a coup and attempting to overthrow the government.
Brunson has continuously denied the charges.
Christian charities have told Premier Turkey is using Brunson as a political bargaining chip.
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