(Adds detail on Fiat deal, comments from Gettelfinger)

By David Bailey

DETROIT, Jan 21 (Reuters) - United Auto Workers President Ron Gettelfinger on Wednesday said an alliance to give Italy's Fiat (FIA.MI: Quote, Profile, Research) 35-percent of Chrysler LLC was the best deal the U.S. automaker could strike to preserve jobs.

"I think we all knew Chrysler needed to partner with somebody. It was a matter of who and what would do the least harm to people," Gettelfinger said. "Do we want to see Chrysler go away? I don't think that's a good idea."

He added: "I personally think that of all of the options out there, this was the best one."

Gettelfinger, who was speaking at the Automotive News World Congress, also said he was optimistic the union could work with the new Congress and the Obama administration.

The UAW campaigned for Obama in states like Michigan, Ohio and Indiana in the November election and has been sharply critical of Republicans in Congress for blocking an auto bailout bill and then pushing for deep union concessions in the emergency package approved by former President George W. Bush.

"I think you'll see a meeting coming up with the Big Three CEOs and the president very shortly," said Gettelfinger.

Under pressure to head off the collapse of one of the U.S. automakers, the Bush administration approved $17.4 billion in loans for GM and Chrysler in late December. Chrysler got $4 billion of loans and says it needs $3 billion more.