Talat, who held talks with several European Union foreign ministers in Brussels, said he remains optimistic that he and Greek Cypriot counterpart, President Dimitris Christofias, can work out differences that have so far blocked direct negotiations to end the more than three-decades-long division of Cyprus.

"I am really optimistic because there is a change on the Greek Cypriot side," Talat said in an interview.

"It is quite possible to reach a solution by the end of 2008," Talat said, adding a lot of technical work had already been done in previous attempts to reach a deal.

He said face-to-face negotiations would concentrate on the "thorniest" remaining issues, including property rights, power-sharing and security.

The EU does not recognise the breakaway northern Turkish Cypriot half of Cyprus, and only the southern Greek Cypriot side of the island joined the bloc in 2004.

Cyprus has been divided since 1974, when Turkey invaded following a failed coup staged by supporters of union with Greece.

Ankara is the only government to recognise the Turkish Cypriot state.

Despite remaining optimistic, Talat said he believes the Greek Cypriots are not ready however, for reunification talks to start next month, despite having agreed to a June 21 start date.

Greek Cypriot government officials have said that negotiators had not made enough progress on some of the more sensitive issues to start direct talks.

Past efforts to reach a solution have been stalled by disagreements over issues that include power-sharing arrangements, the return of property to Greek Cypriots, and the fate of settlers from the Turkish mainland in northern Cyprus.

Talat said he urged EU officials on Tuesday to keep the pressure on Greek Cypriots so they remain committed to finding a solution.

"We are asking from the EU to encourage Greek Cypriots for a solution because they don't need a solution as we need, so motivation is necessary," Talat said.

Talat accused the EU of being biased towards the Greek Cypriot side and says he believes that the EU can act in technical role.

Talat also said he was hopeful that three years after promises were made to open up trade, Germany would force a breakthrough before its EU presidency ends in June.

The Turkish Cypriot community stands to gain millions of euros (dollars) in tourism and trade if it gets access to the EU, a move that would deeply anger Cyprus, because it sees it as recognition of northern Cyprus as a separate state.

Unblocking the aid and lifting the trade embargo has been an arduous process within the EU, due to Cypriot objections. Cyprus has also linked the issue to EU entry talks with Turkey, which are making little progress because of Ankara's refusal to open its ports to trade with Cyprus.