BEIJING - U.S. nuclear envoy Christopher Hill said Sunday he hopes inspectors from the UN nuclear watchdog will be able to visit North Korea soon after a breakthrough in a snarled disarmament process.

But Hill said there was still a lot of work to do to get a process on shutting down Pyongyang's nuclear program back on track after it was stalled for months by a dispute over the transfer of frozen North Korean funds.

North Korea on Saturday invited inspectors from the International Atomic Energy Agency to visit as the transfer of money neared completion.

Hill, speaking to reporters on a trip to the Mongolian capital of Ulan Bator, said the IAEA delegation is likely to set off for North Korea soon.

"I would assume very quickly, I think they have been hoping to get this call," Hill said.

In Vienna, IAEA spokeswoman Melissa Fleming confirmed Sunday the North Korea invitation had been received. "We will be deciding on next steps tomorrow," she said.

North Korea said a "working-level delegation" from the U.N. nuclear watchdog had been invited to discuss procedures for the verification and monitoring of the Yongbyon reactor's shutdown. North Korea expelled IAEA inspectors in December 2002.

Hill said the participants in the talks -- the U.S., host China, Russia, Japan and the two Korea -- should now move to fully implement a February agreement and the eventual denuclearization of the Korean peninsula.

North Korea had refused to move on its February pledge to shut down the Yongbyon reactor until it receives $25 million in funds that were frozen in a Macau bank. The U.S. accused Banco Delta Asia of helping North Korea's government pass fake $100 bills and launder money from weapons sales.

Claiming the financial freeze was a sign of Washington's hostility, North Korea boycotted the six-nation talks for more than a year, during which it conducted its first-ever atomic bomb test last October.

South Korea welcomed the steps but also said it was too early to celebrate.

"This is good news ... (but) this is not the time to get excited," South Korean chief nuclear envoy, Chun Yung-woo, told The Associated Press.

Chun said he expects that "the North will shut down its nuclear reactor at an early date" but took a wait-and-see approach, saying Seoul and its regional partners need to see how quickly North Korea and the IAEA complete the discussions and shut down the reactor.

South Korea plans to start shipping 50,000 tons of heavy fuel oil to North Korea by the time Pyongyang shuts down its nuclear reactor, said Chun, adding preparations could begin in coming weeks.

The North is to eventually receive further energy or other aid equivalent to 950,000 tons of heavy fuel oil in return for irreversibly disabling the reactor and declaring all nuclear programs.

Hill said he expected the next round of nuclear talks to be held in early July, adding that it was important for North Korea to close its reactor before the next meeting of all parties.