Omar Khadr's war crimes trial has been put off for another week, as reports surface that lawyers are seeking a plea bargain deal.

The trial, which is being held in Guantanamo Bay, was set to resume Monday. Instead, proceedings will continue on Oct. 25, according to Khadr's Pentagon-appointed lawyer, Lt. Col. Jon Jackson.

Earlier on Thursday, Khadr's Canadian lawyer confirmed that a plea deal was in the works for his client.

Lawyer Nathan Whitling told CTV.ca he is hopeful that a finalized agreement will be announced soon.

"I'm confirming that there's something in the works. ... We're hopeful that there's a potential deal and we're hopeful there will be a (finalized) deal," Whitling said from his Edmonton law office, adding that he wouldn't confirm any details.

Whitling also confirmed he was in Guantanamo Bay all last week to take part in negotiations for the purpose of reaching a plea deal with prosecutors.

Khadr, 24, is accused of killing an American soldier in Afghanistan when he was 15. He has been held in Guantanamo for close to a decade.

A report in Al-Arabiya News Agency said a deal has already been reached and would be announced soon. Under the terms of the agreement Khadr would return to Canada to serve out his sentence, the report says.

However, Prime Minister Stephen Harper's spokesperson Dimitri Soudas said reports that Khadr may serve out the remainder of his sentence here are nothing more than rumours.

Soudas said Khadr is facing serious charges in the U.S. that would have to be addressed there.

NDP foreign affairs critic Paul Dewar said that despite the latest developments, the government remains unmoved in its decision to not seek Khadr's return.

"Surprise surprise, the Conservatives have stuck to their talking points and not taken a stand," Dewar told CTV's Power Play.

He added that it's likely that the U.S. is hoping to finally close the Khadr saga, yet Canada won't act to expedite the trial.

"The United States is really tired of this file and this issue, and they don't want Khadr around."

Liberal critic Ujjal Dosanjh said that Khadr may not be a popular figure, but he added that the constitution states that Canada must aim to look after its citizens.

"Our constitution and our traditions say that governments must protect its citizens, no matter how vile they may be."

With files from The Canadian Press