SEOUL, June 13 (Reuters) - The transfer of North Korean funds in a Macau bank, whose delay has stalled a nuclear disarmament deal, should be completed this week, Yonhap news agency on Wednesday quoted a senior South Korean official as saying.

Reclusive North Korea has refused to move on a February deal to begin shutting its Yongbyon nuclear reactor and source of material for atomic bombs until the $25 million of its funds are released through normal banking channels.

"There is a high possibility all of North Korea's funds in BDA (Banco Delta Asia) will be transferred within this week," Yonhap quoted what it called a key government official as saying.

The funds were effectively frozen in BDA and because of the stigma attached to holding North Korean assets, banks have baulked as acting as a conduit for the money to be returned to Pyongyang.

He denied some media reports that some of the money had already been withdrawn.

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