Top diplomats from South Korea and China have confirmed that Beijing is on board with President Lee Myung-bak’s proposed “grand bargain” plan to deal with the North Korean nuclear issue.

The announcement was made following a meeting between Foreign Minister Yu Myung-hwan and his Chinese counterpart Yang Jiechi on Tuesday in Shanghai.

A Foreign Ministry official said the grand bargain proposition to scrap the North’s nuclear program in return for aid and security guarantees is based on principles the five parties of the six-party nuclear talks have already agreed upon.

The official added that Seoul will consult Beijing and other concerned parties on the details of the bargain.

Meanwhile, the two sides shared the view that their respective bilateral policies with Pyongyang should take into consideration the larger framework for resolving the North's nuclear issue and realizing regional peace and security.

To that end, they agreed to continue close cooperation and consultations.

China added that it will work to support South Korea’s hosting of the next Group of 20 summit slated for next year.