United States assistant trade representative Barbara Weisel said the countries will return to negotiate the deal which has become bogged down partly because of Malaysia's affirmative action policies for ethnic Malays.

"We would like to finish this as quickly as possible and there's an ideal window to do that ... we'd prefer it not to go on past next year, in the second quarter," Weisel told reporters.

"Given that there are some sensitive issues here," it would take time, she said.