Both governments have pledged to provide support worth hundreds of millions of pounds to potential buyers of Tata Steel after the company revealed it would sell its UK business last month.
In addition, the UK Government has said it is willing to take a minority 25% stake in a rescue venture if needed.
Unite assistant general secretary Tony Burke said the news gives families and communities "the assurance that serious effort is being made to secure a new owner".
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"In pledging to take a stake, government ministers have responded to the calls of the steel unions, politicians, industry and the public alike, who all recognise that we need a successful steel industry or we will cease to be a manufacturing power house," he said.
"We hope that today's commitment will reassure Tata Steel's customers and the hundreds of businesses in the supply chain and convince them to hold their nerve and keep their faith in a world class workforce.
"Today's announcement though is only part of the solution. The task now is to secure a buyer who is committed to purchasing the whole of Tata Steel UK and securing the long term future of steelmaking in the UK. Our members will also need strong commitments during the sales process about their pensions and assurances that none of them will suffer an adverse impact."
(LM)
