TOKYO - China's top nuclear negotiator said on Saturday Beijing was optimistic for the North Korean denuclearisation deal, which has been stalled due to a row over Pyongyang funds frozen at a Macau bank, a report said.

The headquarters of Banco Delta Asia in Macau. China's top nuclear negotiator said on Saturday Beijing was optimistic for the North Korean denuclearisation deal, which has been stalled due to a row over Pyongyang funds frozen at a Macau bank. [AFP]

"A solution is being sought in a way that the government of Macau will handle" the frozen assets, Wu Dawei was quoted as saying by Japan's Jiji Press news agency.

"We have a good outlook for a solution," he said. "Good news will come soon."

Wu, who met Japanese senior politician Koichi Kato in Beijing, also said the UN nuclear watchdog was keeping contacts with North Korea, adding that Pyongyang "has told the nuclear agency that it would accept inspections after the BDA (Banco Delta Asia) row is resolved."

"The latest nuclear deal stipulates the disablement of all existing nuclear facilities," Wu said. "We acknowledge it also includes programmes related to uranium enrichment."

China is the broker of the six-nation talks that led to a February 13 agreement with Pyongyang.

Under the deal, North Korea promised to shut down and seal its Yongbyon reactor in exchange for energy aid.

But Pyongyang last month refused to act until it receives some 25 million dollars of its funds frozen in Macau's Banco Delta Asia.

The funds were frozen in 2005 at Washington's behest over allegations of money laundering and counterfeiting.

US authorities last month dropped the sanctions and said it was up to the Macau authorities to release the cash.

But the funds have not yet being transferred, reportedly due to problems finding a bank willing to handle the cash.

North Korea failed to meet the April 14 deadline to take the initial actions under the deal.

Wu also told the Japanese delegation that China requested Japan to bear a proper share of the burden of providing 950,000 tonnes of heavy fuel oil to North Korea once it disables its nuclear facilities.

Japanese Prime Minister Shinzo Abe, known for his hard line on North Korea, has said he would not provide any aid under the US-backed six-nation deal until North Korea resolves a row over its kidnapping of Japanese citizens.