A leading German daily says hard-liners in North Korea seem to have lost ground after its leader Kim Jong-il recovered from months of being sick.

The Süddeutsche Zeitung quoted North Koreans living in China as saying Friday that hard-liners - including Kim’s brother-in-law Jang Song-taek - had a tight grip on the communist state while Kim was fighting health problems, but that the interim leaders have been harshly criticized upon Kim’s return.

According to the report, the North’s recent announcement that it will hold elections for the North’s parliament, the Supreme People's Assembly, signals Kim’s return to power and the end of hard-line rule.

The daily said despite his suppressive rule over North Korea, Kim is the best leadership option the North Korean government has at the present time.