An Australian diplomatic mission has returned from North Korea confident the Pyongyang regime is eager for dialogue to end the West's concerns over its nuclear ambitions, Foreign Minister Alexander Downer said Monday.

The first mission to be received by the Stalinist state from a Western nation since the crisis began developing in October arrived back at the weekend following talks with senior North Korean officials.

Downer said the delegation's view was that North Korea was seeking dialogue on the issue and would welcome it.

The Australian government also believes dialogue is the key to a successful outcome, he said.

He said the delegation expressed concern about North Korea's decision to pull out of the Nuclear Non-Proliferation Treaty, expel International Atomic agency observers and reopen a mothballed nuclear facility.

The mission strongly urged Pyongyang to commit fully to the treaty, saying it was not in North Korea's best interests to withdraw from it.

"As a result of our delegation's visit to North Korea, I have a greater level of optimism that this issue can be resolved than I had before the delegation went," he told reporters in Adelaide.

"I am glad I sent the delegation and they have made a very constructive contribution to ensuring the Korean Peninsula remains peaceful." The five-member team, led by Murray McLean, the Australian foreign affairs department's top North Asia expert, included John Carlson, director general of Australia's Safeguards and Non Proliferation Office.

The delegation held talks on Wednesday with Vice Foreign Minister Choi Su-hon and Foreign Minister Paek Nam-sun.

Downer said he had already discussed the delegation's conclusions with US Secretary of State Colin Powell, Japanese Foreign Minister Yoriko Kawaguchi and South Korean Foreign Minister Sung-Hong Choi.

He said he would follow that up by sending McLean to Washington to give further briefings to US officials while other delegation members go to Seoul and Tokyo - Sapa-AFP.