Republican John McCain has decided to attend the first presidential debate with Democrat Barack Obama Friday evening after earlier suggesting he might not show up because of the nation's financial crisis.

Citing McCain's staff, CNN reported that McCain has now decided to fly to Oxford, Mississippi, to participate in the debate with Obama at the University of Mississippi.

McCain on Wednesday had said he was suspending his campaign to return the Senate in Washington to work on emergency legislation for President George W Bush's 700-billion-dollar rescue plan for the nation's financial sector.

McCain wanted the Obama campaign to agree to postponing the debate so the financial crisis could be addressed. Obama refused, saying it was necessary for the two candidates to discuss their positions before voters.

Congressional Democrats and Republicans have been in contentious negotiations about the controversial bailout package, which Bush insists is necessary to prevent a complete economic collapse.

McCain's decision to suspend the campaign was initially viewed as a move to show he can play a leading role on economic issues, as polls show voters have more faith in Obama to manage the nation's economy.

But McCain also exposed himself to criticism that he was trying to avoid the debate with Obama, and Democrats charged that he was using the financial crisis to score political points.

Friday's debate between the 72-year-old McCain and 47-year-old Obama was to focus on foreign policy, a topic seen as an advantage for McCain, but will now surely include questions about the economic crisis and Bush's bailout proposal - the largest in US history.

Bush administration officials have been in discussions with Congress about the emergency proposal since last week but face growing criticism from conservative Republicans who believe the proposal violates free-market principles. Majority Democrats argue it lacks adequate protections for taxpayers footing the bailout cost and homeowners with failing mortgages.