A delegation from the International Monetary Fund will return to Washington after talks with Hungarian authorities as several issues remain open and Hungary needs to work out steps to meet its budget targets, the IMF said on Saturday.

Talks were expected to be completed early next week.

The IMF said in a statement Hungary would need to take additional measures to meet its deficit targets this year and in 2011.

In an environment of heightened market scrutiny of government deficits and debt levels, the fiscal deficit targets previously announced -- 3.8 percent of GDP in 2010 and below 3 percent of GDP in 2011 -- remain an appropriate anchor for the necessary consolidation process and debt sustainability, and should be adhered to, but additional measures will need to be taken to achieve these objectives, it said.

Sustainable consolidation will require durable, non-distortive measures, which the authorities need more time to develop.

(Reporting by Krisztina Than)