A contentious Trump administration proposal to give the United States US$500 billion worth of profits from Ukraine's rare earth minerals as compensation for its wartime assistance to Kyiv has been taken off the table, President Volodymyr Zelensky said on Sunday, indicating a more equitable deal was in the works.

Zelensky had earlier declined a US draft agreement on exploitation of his country's valuable minerals such as lithium used in the aerospace, defence and nuclear industries because it did not contain security guarantees and came with the US$500 billion price tag.

“The question of US$500 billion is no longer there,” Zelenskyy told a news conference at a forum of government officials in Kyiv marking the three-year anniversary of Russia’s attack on Ukraine.

The Ukrainian leader said considering aid as a debt to be repaid would be a “Pandora's box” that would set a precedent requiring Kyiv to reimburse all its backers.

“We do not recognise the debt," Zelensky said. "It will not be in the final format of the agreement.”

No further details were given on the state of negotiations. Ukraine has insisted on security guarantees that it needs to deter any potential Russian aggression in the future.

Trump's engagement with Russian officials and his recent agreement to reopen diplomatic ties and economic cooperation with Moscow have marked a dramatic about-face in US policy that has rattled leaders in Ukraine and across Europe.

Zelensky has expressed fear that Trump pushing a quick resolution would result in Ukraine losing territory. US officials have asserted the Ukrainian leader would be involved if and when peace talks actually start.

Trump, however, prompted alarm and anger in Ukraine this week when he suggested Kyiv had started the war and Zelensky was acting as a “dictator” by not holding elections.

On Sunday, Russian Deputy Foreign Minister Sergei Ryabkov told the state Tass news agency that Moscow and Washington would continue bilateral talks at the end of next week.

European Union Commission President Ursula von der Leyen and other top EU officials were headed to Kyiv on Monday for talks with Ukraine’s government.

British Prime Minister Keir Starmer and French President Emmanuel Macron were to both visit Washington this week as Europe attempts to persuade Trump not to abandon Ukraine in pursuit of a peace deal. (AP)