The Centre and the representatives of the Khaplang group of the Nationalist Socialist Council of Nagalim began talks in New Delhi on Wednesday on extending the ceasefire agreement with the government that ends on Thursday.
Senior officials of the home ministry and paramilitary forces represented and top leaders of the NSCN-K were involved in the talks, official sources said.
Though they did not give the details of the discussions, the sources said it was likely that the ceasefire would be extended for another year.
The discussions were being held in a cordial atmosphere and both sides had expressed satisfaction on the progress made so far in implementing the ceasefire, they said.
The extension of the ceasefire was seen by both sides as the only way to move ahead towards a permanent solution to the Naga issue, they added.
The sources said the steps taken so far by the Centre on the Naga issue were 'a clear expression of its commitment and determination to resolve the problem in the larger interest of the people of Nagaland'.
The Khaplang faction had conducted prolonged parleys with representatives of the Centre before arriving at an agreement on April 11, 2001, to hold talks and cease violence.
A ceasefire monitoring board, comprising five persons each of the Centre and the NSCN (K), was set up and the ground rules for the ceasefire finalised. The Khaplang faction suffered a setback in 2003 when the Myanmar army ran over its camps, including the headquarters.