Strategic Defence and Security Review (SDSR) on the MoD budget from April onwards has yet to be fully spelled out.
It is likely some new military programmes will be affected.
"Perhaps it is our fault for failing to make our position clear - we thought we had told the outside world," Mr Luff told Bloomberg's Business Week.
"The big decisions have been taken; the fundamental assumptions won’t be changed, but there were unallocated savings identified which were a matter of public record and which we now have to find."
The MoD has been forced to reduce its expenditure by eight percent over the next four years.
Cuts already announced in the SDSR include reduced aircraft numbers for a single future aircraft carrier and the possible mothballing of a second carrier.
Last week Defence Secretary Liam Fox announced that up to 11,000 service personnel risk losing their jobs.
"We always said it would take more than two planning rounds to sort out the full financial consequences of the inheritance we had," Mr Luff said.
The coalition Government blames a £38bn defence budget shortfall inherited from the Labour Party.
"There are a whole stack of options on the table which we are still looking at and I’m not going to rule in or out any one of them," Mr Luff added.
However, he would not be drawn on the further extent of cuts expected to hit the MoD.
When asked if further cuts would total £1bn Mr Luff, who is responsible for defence equipment, support and technology, replied: "It depends on how you define it."
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