NATO-member Turkey and Armenia, a former Soviet republic, also hope to reopen their shared border, closed in 1993 _ a goal encouraged by the European Union and the United States.

"We could be very close to settling the issue in the near future," Armenian Foreign Minister Edward Nalbandian said after holding talks with Turkish counterpart Ali Babacan during a Black Sea economic conference in Yerevan.

Babacan said Turkish leaders want an "all-encompassing" solution and "full normalization" of ties, according to comments broadcast by Turkey's NTV television after he returned to Ankara.

Both sides said they had made progress during Thursday's talks. But neither gave any hints of how they might resolve the key point of contention _ Armenia's assertion that the Ottoman-era killings of Armenians amounted to genocide.

Turkey disputes the claim, saying there was no systematic campaign to wipe out Armenians, despite estimates that up to 1.5 million Armenians died in what is widely viewed by scholars as the first genocide of the 20th century.

The two countries also differ over Azerbaijan's Nagorno-Karabakh region, controlled by Armenia after a six-year war that broke out in the waning days of the Soviet Union.

Turkey wants its talks with Armenia to proceed in parallel with negotiations between Armenia and Azerbaijan, an ally of Turkey.

Azerbaijan's Deputy Foreign Minister Mahmud Mamadkuliyev, also in Yerevan for the Black Sea conference, said his country was closely following the talks between Turkey and Armenia.

"Steps to rebuild relations between Armenia and Turkey must be linked to settling the (Nagorno-Karabakh) conflict," he said.

The U.S. and EU have urged Turkey and Armenia to resolve their differences.

President Barack Obama _ who seeks Turkey's support for U.S. military goals in Iraq and Afghanistan _ is expected to issue a closely scrutinized statement marking Armenian remembrance day on April 24.

Obama had referred to the "Armenian genocide" during his presidential campaign, but refrained from using the term during a recent visit to Turkey, saying only that his views were on the record.