White House considered banning China's Huawei from the U.S. financial system earlier this year as part of a host of policy options to thwart the blacklisted telecoms equipment giant, Reuters reports, citing three people familiar with the matter.

The plan, which was ultimately shelved, called for placing Huawei Technologies Co Ltd, the world's second-largest smartphone producer, on the Treasury Department's Specially Designated Nationals (SDN) list.

One of the people familiar with the matter, who favours the move, told Reuters that it could be revived in the coming months depending on how things go with Huawei.

The plan was considered by the White House National Security Council, and seen by officials as a nuclear option atop a ladder of policy tools to sanction the company, two of the people said. Such a designation can make it virtually impossible for a company to complete transactions in U.S. dollars.

Administration officials drafted a memo and held interagency meetings on the issue, according to one of the people, showing the extent to which administration officials mulled deploying the United States' most aggressive sanctioning tool against the Chinese company.

Its use was tabled in favour of other measures, such as placing Huawei on a trade blacklist, which forces some suppliers to obtain a special license to sell to it.