MOSCOW (Reuters) - Russia and Japan will continue seeking compromise in their territorial dispute over a set of islands north of Hokkaido, Kremlin spokesman Dmitry Peskov said on Friday.

The dispute over the islands known as the Kuriles in Russia and as the Northern Territories in Japan is one of the main factors complicating the signing of a World War Two peace treaty between Russia and Japan.

(Reporting by Dmitry Solovyov; Writing by Alexander Winning; Editing by Vladimir Soldatkin)