SQL Agent Job error while trying to execute SSIS package

Question

I keep getting the error "Executed as user: Domain\User. Unable to open Step output file. The step failed." while trying to execute a SSIS package as a SQL Agent Job. The error is thrown almost instantaneously.

I have created a proxy account for executing the job & this account has read/write permissions to the folder where the package is saved.

Also, there is nothing being written to the error output file.

Thanks Girija