UPDATE 4-India government looks set to avoid early election

(Adds comment from Congress leader)

By Bappa Majumdar

NEW DELHI, July 4 (Reuters) - Facing the likely withdrawal of leftist allies, India's government moved closer on Friday to clinching political support it needs to avoid an early election and force through a nuclear energy deal with the United States.

Prime Minister Manmohan Singh and his senior officials spent the day meeting leaders of a key regional party and said they had the support to remain in power.

"We have the numbers and the government can continue now," Veerappa Moily, a senior government official told Reuters late on Friday. "We have the full support and the Samajwadi Party is now supporting us."

The Samajwadi Party (SP), a key regional party from Uttar Pradesh state, earlier gave their strongest hint yet that they will back the Congress party-led ruling coalition in parliament if the communists walk away.

The SP has a history of pragmatic alliances with national parties and would be burying years of bitter relations with Congress if it comes to the rescue.

"The prime minister's clarifications on the nuclear deal are quite satisfactory," SP General Secretary Amar Singh told reporters after meeting the prime minister.

Soon after, the four communist parties that give the coalition a majority in parliament said the government must tell them by Monday if it plans to press ahead with the next step in finalising the civilian energy deal, which they strongly oppose.