North Korea will send a delegation to the 2018 Winter Olympic Games, taking place in South Korea in February, says Seoul.
The announcement came as the countries met for their first high-level talks in more than two years.
South Korea had said they would use the talks to raise ways to improve inter-Korean relations.
The full details of the delegation to be sent – and whether it includes athletes – are still emerging.
Ties between both Koreas have become increasingly tense since the last talks in 2015.
Relations broke down then after Seoul suspended a joint economic project at the Kaesong Industrial complex in North Korea following a rocket launch and nuclear test by the North.
The incident led to North Korea ending all communication with Seoul, including cutting off telephone lines.
Tensions have risen in the years since, as the North continues to rapidly advance its banned nuclear weapons programme.