Japan and South Korea agreed Saturday to work on resuming the six-party talks on North Korea's nuclear programs and keep the freeze on a multilateral project to build two nuclear reactors there for another year instead of scrapping it altogether, a Japanese official said.

Foreign Minister Nobutaka Machimura reached the agreement in talks with South Korean President Roh Moo Hyun and Foreign Affairs and Trade Minister Ban Ki Moon. Machimura also warned of economic sanctions against North Korea.

Pyongyang should return to the multilateral talks "unconditionally" by the end of this year, Machimura was quoted as telling Roh.

The two sides agreed to work closely with the United States to resume the six-nation talks at an early date.