The Nepalese home minister, Govinda Raj Joshi, has said his country and Bhutan have edged closer to resolving an eight-year dispute on the repatriation of one-hundred-thousand refugees living in eastern Nepal.

Mr Joshi was speaking after a three-day visit to Bhutan, the first at this level for three years.

He said he expected an agreement on repatriation in the next two months.

Many of the refugees say they are ethnic Nepalese, forced to flee Bhutan in 1990 by ethnic repression.

Nepal says they are Bhutanese citizens and must return; Bhutan says less than a third are Bhutanese citizens.