One of Afghanistan's senior leaders says the Government remains willing to negotiate a peace deal with the Taliban, insisting the insurgents can never win back power militarily.

Key points: CEO says Islamist hardliners lack firepower to oust Government

CEO says Islamist hardliners lack firepower to oust Government Ms Bishop welcomed efforts to reach out to more moderate Islamists

Ms Bishop welcomed efforts to reach out to more moderate Islamists UN says last year a record 11,000 were killed or injured in Afghanistan

Abdullah Abdullah, the Chief Executive (CEO) of Afghanistan, said despite dire predictions from the UN and others, the Islamist hardliners lack the firepower to oust the Government.

Analysts say the comments acknowledge the bloody stalemate that now hangs over the country, where Afghan civilians have become the victims.

Australia's Foreign Minister Julie Bishop said a peace deal was possible, and welcomed the Government's effort to reach out to some more moderate Islamists.

In the 15 years since it led western forces into Afghanistan in 2001, the United States is estimated to have spent between $US4 trillion and $US6 trillion there. Australia has spent $7.5 billion.

But despite the huge sums expended to defeat the Islamist insurgency, over the weekend Mr Abdullah acknowledged that getting the Taliban to the negotiating table was the country's "best hope for peace".

"So the principle position of keeping the door open for those who give up violence is there, but at the same time, we need to strategize in accordance with the realities that are we are faced with," he said.

Those realities, Mr Abdullah said, are an enemy which is so committed to violence that it cannot back down, but yet lacks the strength to seize power.

"Taliban believed that in 2015, or even earlier, 2014, they can overcome militarily — that is why there is a reluctance on their part in terms of the pursuit of talks and negotiations," he said.

'Would welcome any progress towards a permanent peace'

Thomas Ruttig, the co-director of the Afghan Analysts network, said the ongoing deadlock had proven deadly for Afghanistan's people.

"At the moment there's a stalemate, it's a very hurting stalemate," he said.

According to the UN, last year a record 11,000 were killed or injured in Afghanistan.

But Mr Ruttig said both sides' "recent escalation of fighting does not mean they're unwilling to talk, eventually".

"This might mean that they want to start negotiations at some point from a position of strength, which of course is a logical, although for the Afghan civilian population a very brutal approach," he said.

Ms Bishop said gains had been made during the one and half decades of military intervention, but she agreed a negotiated settlement with the insurgents was the way forward.

"I would welcome any progress towards a permanent peace for Afghanistan," she said.

"I do believe that a peace deal is possible, there have been some efforts by the Afghan Government to finalise a peace settlement with some of the insurgent leaders, that's not definitive, but it's certainly a step in the right direction."

Ms Bishop referred to recent Afghan efforts to strike an accord with one militant group, Hezb-i-Islami, led by warlord Gulbuddin Hekmatyar.

Hekmatyar is still deemed a terrorist by the US, but is reportedly on the verge of agreeing to a deal which would allow him into politics in exchange for renouncing violence.

Mr Ruttig said while that would allow the Government to claim a negotiating victory, Hezb-i-Islami's limited reach means it would not stop Afghanistan's escalating violence.

He said that he believes despite the public impressions, with effective behind-the-scenes communication there was still scope for talks with the Taliban.

"I would not exclude that the Taliban would come to the decision to enter into talks, feelers are always out on both sides without both sides saying so," he said.