NEW DELHI, July 14 (AFP) - A Bhutanese diplomat said here Monday that Bhutan was close to clinching a border deal with neighbouring China.

"We had several round of negotiations with China to formally demarcate our borders with it," he said.

"The differences have narrowed down between the two sides and a settlement is expected in the near future," he said on condition of anonymity.

Bhutan and China last held talks on their borders in Beijing last November.

"Bhutan is keen to resolve the boundary question and we hope it will be solved as early as possible," the Bhutanese official said.

Bhutan, wedged between Tibet and northeastern India with a population of more than 600,000, is one of the most isolated countries limiting tourism and fiercely protective of its Bhuddist image.