Following an extended third day of discussions, Indian Foreign Minister Jaswant Singh and US Deputy Secretary of State Strobe Talbott were only able to announce their general satisfaction with the sessions.

Mr Talbott described the meetings as "very important," but hinted that both sides were still some way from an agreement.

A joint statement issued later to the press said they would hold a ninth round "towards the middle of the year," with specific dates and a venue to be decided.

Talbott: "We are doing good work."

Diplomats had descibed the sesssions on Friday and Saturday as "intensive". The two sides are trying to reconcile America's concerns about non-proliferation with Indian security interests.

But despite positive expressions of goodwill neither side was willing to discuss details of this eighth round of talks since India and Pakistan conducted their underground nuclear tests last May.

"There is a clear intent to take the dialogue to a definitive position," an Indian foreign ministry official said after the session on Saturday, adding: "They are discussing complex issues. It has reached a stage where negotiations are narrowing down."

Singh: "We have made progress."

Mr Talbott said the India and U.S. were looking to harmonise each other's interests but a key area of difference on the Nuclear Non-Proliferation Treaty (NPT) posed difficulties. "That is because India holds the view, with which we very strongly disagree, that for the forseeable future India must develop and deploy a nuclear deterrent," he said.

India criticises the NPT for being biased in favour of the five recognised nuclear states.

The US has been pressing India to exercise restraint with regard to its nuclear weapons and missile programmes. Last May's tests provoked sanctions from the US and other countries, and fears of a regional nuclear arms race.

Paul Danahar in Delhi: The Indo-US relationship is warming up.

But so far there has been no tangible progress, with India refusing to accept US attempts to apply benchmarks to aspects of its nuclear policy.

US insistence that India sign the Comprehensive Test Ban Treaty (CTBT) is thought to have been the main focus of the talks, together with fissile material production, export controls and other non-proliferation issues.

India's Prime Minister Atal Behari Vajpayee has promised India will sign the CTBT before September. For its part, India wants to know when the US will ratify the treaty.

Loans wanted

Meanwhile, Mr Singh is expected to protest against continued US opposition to World Bank loans to India. Similar restrictions on Pakistan have been eased, while India is awaiting around $1.7bn in World Bank loans.

Mr Talbott said he understood the "ill feeling on the Indian side," but said while sanctions were regrettable, they remained "a fact of life."