A US spy satellite has confirmed several times in August that the seclusive Stalinist country is building reactors at Yongbyon and Taechon, the Nihon Keizai Shimbun quoted the unnamed source as saying.

The construction was believed to be still in the stage of leveling the land but will "negatively affect North Korea" ahead of six-nation talks on stemming Pyongyang's nuclear ambitions, the source told the daily.

North Korea was supposed to have suspended development of the two reactors under a 1994 agreement with the United States.

A fourth round of six-party talks between the two Koreas, the United States, Japan, Russia and host China is expected in the week beginning September 12, following a delay demanded by North Korea.

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