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Five skeletal bodies and two human heads have been found inside a shipwreck on an island off the Japan coast.

Police made the discovery in the wooden boat's stern on Japan's Sado Island, northwest of the mainland, on Saturday, Coast Guard official Kei Chinen said.

The heads of two people, as well as five bodies, were found by the officers, who believe the boat is from North Korea.

The cause of death is under investigation, Mr Chinen said.

It is not yet clear whether the heads belonged to the five bodies or were from two other people.

The wooden boat, which had letters and numbers written in Korean on the bow, was first spotted by a police officer on Friday afternoon.

Police waited until Saturday before entering it due to unstable weather.

Last month, another wooden boat washed up on the shores of Sado Island, Mr Chinen said.

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The grisly discovery adds to the troubles that Japan and South Korea have with their neighbour North Korea, making an investigation difficult to carry out due to strained diplomatic ties.

North Korean leader Kim Jong Un has given the US until the end of the year to propose new concessions in talks over his country's nuclear arsenal and reducing tensions between the adversaries.

And on Friday, Japanese public broadcaster NHK sent a news bulletin that incorrectly reported North Korea had launched a missile that fell into waters east of the Japanese archipelago. It later issued an apology explaining it was a media training alert.