The dispute between the US and North Korea over the reactivation of a nuclear plant capable of processing weapons-grade plutonium is likely to be referred to the United Nations Security Council.
The news comes as South Korea is warning reconciliation efforts with the North could be heading for deadlock.
US arms control chief Mr John Bolton said today the International Atomic Energy Agency (IAEA) would soon meet to discuss what the US fears is an attempt by North Korea to reactivate its nuclear arms programme.
"We see a consensus emerging probably by the end of this week that there would be a third IAEA resolution and the matter would be referred to the Security Council and taken up for consideration there," Mr Bolton told a press conference in Pyongyang.
Mr Bolton, a hawkish member of US President George W Bush's administration, has been engaged in top-level talks with South Korean officials on proposals to end the stand-off with the North.
At the same time North and South Korea are holding cabinet-level talks - the first between the two since the nuclear reactor issue triggered international discord.
In a gloomy start to the talks, South Korea said inter-Korean exchanges could stall unless the North ceased its nuclear ambitions.
Until now North Korea has sought to resolve the matter through direct talks with Washington, expressing stout opposition to UN involvement and saying any Security Council sanctions would be tantamount to a declaration of war.
South Korean officials say proposals made by Russian Deputy Foreign Minister Alexander Losyukov during six hours of talks with North Korean leader Kim Jong-Il in Pyongyang on Monday are also under consideration.
Under Russia's peace strategy, the United States would be required to guarantee not to launch a military attack against North Korea, while offering economic and humanitarian aid to the impoverished nation.
In return, North Korea would to pledge not to restart its nuclear weapons programme, which it has threatened to do during the three-month-old stand-off.
The nuclear issue dominated a tense opening day of inter-Korean talks with North Korea denying it has plans to make nuclear weapons. A dissatisfield South Korea pressed the North to go one step further and disavow its nuclear ambitions.
"The South emphasised that overall inter-Korean relations would be unable to move ahead without the nuclear issue being resolved," said Mr Rhee Bong-Jo, spokesman for South Korea's delegation.
The two sides have held eight rounds of inter-ministerial talks since President Kim Dae-Jung's June 2000 summit with North Korean leader Mr Kim Jong-Il in Pyongyang.
AFP