Japan’s Asahi Shimbun says South Korea and the U.S. are considering recognizing the current North Korean regime led by Kim Jong-il in return for the North’s abandonment of its nuclear ambitions.

Quoting sources familiar with the six-party nuclear talks, the Japanese daily said the recognition is one of the measures the two allies hope will improve relations with the North.

It’s also a move to create a nuclear-free Korean Peninsula by promising to guarantee the security of the North Korean regime, which is of utmost importance to North Korean leadership.

Asahi said Seoul and Washington may also consider replacing the Korean War armistice agreement with a permanent peace treaty or offering a substantial economic aid package to Pyongyang.

The South and the U.S. will demand in return that North Korea scrap all its nuclear programs in a verifiable way and promise not to export nuclear substances, weapons and technology to other countries.