Japan and Russia reaffirmed Tuesday their readiness to discuss "every possible option" to resolve a long-standing territorial dispute within this generation.

After summit talks with Russian Prime Minister Vladimir Putin in Tokyo, Japanese Premier Taro Aso said his Russian counterpart expressed a "strong will" to settle the territorial dispute surrounding the Kuril Islands.

Both sides agreed to discuss the matter at a Group of Eight summit to be hosted by Italy in July.

The dispute over the archipelago located about 1,300 kilometres north-east of Japan's northernmost island of Hokkaido, has kept the two nations from signing a peace treaty.

The islands have been under Russian rule since the end of World War II, but Tokyo maintains a claim to the four southernmost islands.

Aso and Putin signed a series of bilateral agreements including development of civilian nuclear and oil development, and cooperation on energy saving and crime investigation.

They have also exchanged views on how to tackle the global economic downturn, according to the Jiji Press news agency.

Putin was to depart Tokyo Wednesday.