A South Korean official says negotiations between Seoul and Washington on defense cost-sharing “have advanced fairly” and the allies are "nearing a deal.”

The official made the remark to reporters Tuesday, four days after the eighth round of the Special Measures Agreement negotiations wrapped up in Seoul without agreement. 

During the latest round of talks aimed at specifying five-year cost-sharing plans for American troops stationed on the Korean Peninsula from next year, the allies agreed it will be difficult to complete the domestic procedures necessary for the deal's implementation before the end of the year. 

However, they agreed to target producing a final draft by next month to minimize a possible vacuum caused by a potential delay. 

The Seoul official said they will not set it as a target if there's no possibility to achieve it, but cautioned it's possible it won't be complete by next month.  

Regarding how to finance the joint defense-cost next year in case the deal cannot be worked out in time, the official said necessary budgets will be executed based on this year’s accord and readjusted following a new deal.