Russian President Vladimir Putin, sitting on a stage alongside Japanese Prime Minister Shinzo Abe, proposed on Wednesday that the two men sign a peace treaty by the end of this year. 

The two countries are in dispute over a chain of Pacific islands and as a result have still not formally ended their World War Two hostilities. 

"An idea has just come into my head," Putin said, turning towards Abe, during a question and answer session at an economic forum in the Russian city of Vladivostok. 

"Let's conclude a peace treaty before the end of this year, without any pre-conditions." 

Abe, sitting alongside Putin, did not give his response.