Japan and the United States launched working-level negotiations Thursday on a cost-sharing agreement for the hosting of American troops in the Asian country, according to a source with knowledge of the situation.

The first round of the talks was held via videoconference with foreign and defense officials of the two countries taking part, and is expected to wrap up Friday.

Japan and the United States need to renegotiate Tokyo's budget for hosting the U.S. military in the five years from April 2021, in place of the current deal that expires in March.