Japan, China and South Korea have concluded talks on a three-way investment treaty which could pave the way for the negotiation of a wider free trade agreement, Japanese officials said Thursday.

"The talks have effectively come to a settlement," Chief Cabinet Secretary Osamu Fujimura told a news conference, adding it creates the "legal framework for trilateral economic cooperation."

The three countries agreed terms on the investment pact at a "preparatory" meeting in Beijing on Wednesday, the Japanese Ministry of Economy, Trade and Industry said in a statement.

The end of the talks will "give impetus to discussions on a FTA (free trade agreement) between Japan, China and South Korea," the statement said.

Fujimura said the talks have an economic and political significance and will strengthen relations among the three countries.

Japan, China and South Korea agreed to work for an early signing of the pact, the statement said.

Their leaders could sign the pact when they hold an expected three-way summit in Beijing in mid-May, according to Japanese media reports.