UPDATE 1-Obama to sign order for fiscal commission Thursday

(adds background on co-chairs, quote)

WASHINGTON Feb 16 (Reuters) - President Barack Obama will sign an executive order on Thursday to establish a bipartisan commission charged with tackling the U.S. deficit, a senior administration official said on Tuesday.

Obama will name Erskine Bowles, former chief of staff to President Bill Clinton, and former Republican Senator Alan Simpson to serve as co-chairs of the commission, the official said.

"On Thursday, President Obama will sign an executive order establishing the bipartisan National Commission on Fiscal Responsibility and Reform," the official said.

Bowles was White House chief of staff from 1996-1998.

"In that capacity, Bowles brokered the last significant bipartisan budget agreement, the Balanced Budget Act of 1997, with the Republican leadership in Congress -- helping to generate the first balanced budget in nearly 30 years," the official said.

Simpson was a senator from Wyoming from 1979-1997.

"During his career in the Senate, Simpson was often a strong voice for fiscal balance -- for example, voting in favor (of) the bipartisan 1990 deficit-reduction agreement."

Obama has said he would establish the commission to study options on spending and taxes after lawmakers failed to create a congressional panel on the issue.

(Reporting by Jeff Mason)