China is considering resuming stalled talks with Japan toward signing a treaty on a joint gas drilling project in the East China Sea and may reach a final decision this month, sources involved in Sino-Japanese relations say.

Beijing is hoping to stabilize relations with Japan ahead of next year's Chinese Communist Party Congress, when a major change in leadership is expected, the sources said. In addition, 2012 marks the 40th anniversary of the normalization of relations between the two countries.

However, the decision-making process in China will likely be complicated as it involves not only the Foreign Ministry but also various bodies of the government, party and military. Depending on the outcome of upcoming international meetings involving both countries, Beijing may decide to continue to put off a resumption of the talks, according to the sources.