North Korea is to send a delegation to the 2018 Winter Olympic Games taking place in South Korea in February, officials from the South say.
The breakthrough announcement came as the countries met for their first high-level talks in more than two years.
The delegation will include athletes, officials and supporters.
A military hotline between the nations, suspended for nearly two years, will be reinstated from Wednesday, the South's officials said.
North and South Korea have also agreed at the just-ended inter-Korean dialogue to hold separate military talks. Officials from the two nations met face to face for the first time in more than two years.
Two five-member delegations from both sides held the high-level, inter-governmental dialogue at Peace House, a South Korean building in the truce village of Panmunjom that straddles the heavily guarded border between the two neighbours.
Seoul and Pyongyang also consented to hold a separate dialogue between their military authorities after agreeing that they should make joint efforts to ease military tensions, create a peaceful environment on the Korean Peninsula, and promote reconciliation and unity of the two Koreas.
To promote reconciliation and unity between their people across the border, the two Koreas agreed to activate contact, exchanges and cooperation in diverse areas.
