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UPDATE 1-Japan's Sharp drops suit against China's Hisense over N.America TV sales -Nikkei

sales -Nikkei@

* Sharp withdrew federal lawsuit on Thurs -Nikkei

* Company had accused Hisense of infringing its patents (Adds Sharp declined comment, Hisense no immediate comment, background)

Feb 23 (Reuters) - Japanese electronics maker Sharp Corp has dropped legal action to block China's Hisense Group from selling television in North America, the Nikkei business daily reported on Friday.

Sharp had withdrawn a Federal lawsuit and an action filed with a U.S. trade body as of Thursday, the Nikkei said, without citing sources.

In September, the U.S. International Trade Commission had agreed to probe certain Wi-Fi enabled devices and their parts after Sharp accused Hisense of infringing its patents.

A Sharp spokesman declined to comment on Friday, while Hisense in Tokyo had no immediate comment.

The two electronics makers had been in dispute, with Sharp, which had licensed Hisense to use its brand to sell televisions in the United States, suing the Chinese state-owned firm for putting the Sharp name on what it has called low-quality TVs.

Sharp, which had reduced its overseas TV business, has said it would re-enter the U.S. market with a high-end television brand. (Reporting by Susan Mathew in Bengaluru and Minami Funakoshi in Tokyo; Editing by Arun Koyyur and Joseph Radford)