SEOUL (Reuters) - The outlook for reputed negotiations to extend a bilateral currency swap between South Korea and China appears positive, a South Korean source said on Tuesday.


"Extension of the deal looks optimistic," the source said,


declining to be identified because of the sensitivity of the issue.


Discord over Seoul's decision to deploy a U.S. anti-missile system has raised doubts on whether the $56 billion swap deal, due to expire on Tuesday, would be extended.


South Korea's finance minister has publicly said the deal should be extended to cement existing financial safety nets.

(Reporting by Shin-hyung Lee, Writing by Cynthia Kim; Editing by Eric Meijer)