Beijing on Wednesday urged Tokyo to resume negotiations with China over the Diaoyu Islands in response to a report indicating Tokyo may "acknowledge" China's claim to them to ease tension.

"Japan should face reality, acknowledge the dispute, correct its mistakes and come back to a solution to the issue through negotiations," Foreign Ministry spokesman Hong Lei told a regular news conference.

Japan is seeking to improve relations with China by only acknowledging Chinese claims to the Diaoyu Islands, while maintaining its position that no official territorial dispute exists over them, Japan's Kyodo News reported on Wednesday.