Malaysia plans to reach a solution with London Metal Exchange (LME) over a new goods and services tax on metals traded or stored in the country's bonded zones before an April 1 deadline, the deputy finance minister said.

The LME said that it might stop issuing warrants - legal documents for stored metal - for stocks in Malaysian warehouses from July if it does not get clarification from the government over its planned tax reforms, which are due to take effect on April 1.

"It would seem that we have to work within this one week," Malaysia Deputy Finance Minister Chua Tee Yong told Reuters after a meeting between LME and Malaysian government officials.