Kim Jong Nam's body still in Malaysia amid talk of deal with North Korea

What Malaysia eventually does with the body, and how far it pursues three North Koreans wanted for questioning in the case, and believed to be hiding in the North Korean embassy in Kuala Lumpur, are central to negotiations to resolve a diplomatic row between the two formerly friendly governments, sources aware of the discussions have told Reuters.

Malaysia is trying to secure the release of nine nationals who have been stranded in Pyongyang after North Korea, angered by the suspicion cast by the police investigation, imposed a travel ban on Malaysians leaving its borders.

In response, Malaysia imposed a tit-for-tat travel ban, and called on North Korea to immediately release all its citizens.

There was speculation that some deal had been worked out on Monday, sparking media reports that the body was moved out of the hospital to a funeral parlour, and later was being prepared to be taken on a flight to Beijing.

Malaysia's New Straits Times newspaper reported on Tuesday that the body was expected to go from Beijing to North Korea, without disclosing its source for the information.

But the health minister said the situation was unchanged.

"We have to check with the forensics department if there was any requirement to bring the body out, but as far as we are concerned there is no change in status quo," Subramaniam told reporters.

Subramaniam said the ministry cannot do anything with the body until they are given instructions by "those responsible for the body."

"But the next of kin have not come forward to provide assistance on how the body is to be treated," he said.

Subramaniam said the negotiations were being held by the ministry of foreign affairs and the Prime Minister's department, but the government has otherwise declined to comment.

Kim Jong Nam was murdered on Feb. 13, when Malaysian police say two women smeared super toxic VX nerve agent on his face at the budget terminal of Kuala Lumpur International Airport.

Kim's body has since been at a morgue in Kuala Lumpur, with Malaysia saying it will only hand it over to the next-of-kin.

U.S. and South Korean officials say the North Korean regime was behind the murder of Kim Jong Nam, who had been living in exile in Macau and had criticised his family's dynastic rule of North Korea in the past.