"I believe the conditions are there for continuing the negotiations," Li said following talks here with his counterparts of the Shanghai Cooperation Organization (SCO) which also groups Russia, Kazakhstan, Kyrgyzstan, Uzbekistan and Tajikistan.

Chinese President Hu Jintao had recently transmitted a message to the North Korean leadership stressing the need for nuclear-free status, security and peace on the Korean peninsula and calling on Pyongyang to return to the six-party talks as soon as possible, Li said.

"In its response," North Korea "said it fully accepts that the Korean peninsula must be free of nuclear weapons and is ready to take part in the six-party talks," he added.

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