Prime Minister Yukio Hatoyama said Tuesday the administration is coming closer to forming a policy on where to relocate the Futenma military airfield, an issue that has grown into a row threatening to sour the alliance with the U.S.

"We've come fairly close to saturation point," Hatoyama said after discussing the matter with Chief Cabinet Secretary Hirofumi Hirano and the defense and foreign ministers, who are in charge of negotiating with the U.S.

Hatoyama added that there are still topics to be discussed among his ministers before reaching a conclusion.