The meeting between the two nations is set to take place on Tuesday (January 9) at the Peace House in Panmunjeom, located in the demilitarised zone which is also known as the Joint Security Area.

North Korea's agreement to the talks came hours after South Korea and the United States agreed to halt joint military exercises during the Winter Olympics and Paralympics.

North Korea and South Korea have not held official high-level talks since December 2015 following escalating tension in the region.

Relations appear to have eased in recent days following Kim Jong-un's New Year's Day speech, where he revealed North Korea hoped to compete at Pyeongchang 2018.

The speech appeared somewhat conciliatory, given heightened tensions on the Korean Peninsula in recent months.

It followed a series of missile launches by North Korea, which led to a threat to fire missiles towards the United States Pacific territory of Guam.

US President Donald Trump warned Pyongyang it would face "fire and fury" if it threatened American land.

Trump has now claimed his strong stance on North Korea has helped lead to talks taking place between North and South Korea over participation at the Olympics.

"I always believe in talking, right now they're talking Olympics," Trump told reporters at Camp David in Maryland.

"It's a start, it's a big start.

"If we are not involved they wouldn't be talking about Olympics right now.

"They would be doing no talking.

"He [Kim Jong Un] knows I'm not messing around.

"I'm not messing around, not even a little bit, not even one per cent.

"He understands that."

Trump agreed to halt military exercises in a phone call with South Korean President Moon Jae-in last week.

The White House confirmed the agreement, adding that the US would send a high-level delegation to the Games.

It is thought that this delegation will include members of Trump's family.

Trump has claimed he is supportive of North Korea participating at next month's Olympics and hopes it will aid relations on the Korean Peninsula.

"I'd like to see them getting involved in the Olympics and maybe things go from there," he said.

"So, I'm behind that 100 per cent.

"I spoke to the President, as you know, with President Moon Jae-in of South Korea, he thanked me very much for my tough stance and, you know, for 25 years they haven't been using a tough stance.

"I would love to see them take it beyond the Olympics."

According to Kyodo News, both North and South Korea are both set to send five member delegations to the talks on Tuesday.

South Korea's Minister of Unification, Cho Myoung-Gyon, has been claimed to be leading his country's talks.

His North Korean counterpart Ri Son Gwon is expected to head their delegation.

Pairs skaters Ryom Tae-Ok and Kim Ju-Sik are the only North Korean athletes to have so far qualified for Pyeongchang 2018.

They missed a deadline last month to accept their spot, although they could still be allowed to participate.

It remains possible that other athletes from North Korea could also be given wildcards.

South Korea have been strongly supportive of North Korean involvement in the Games, which they hope could lead to a reduction in tensions and potential diplomatic talks.

The International Olympic Committee (IOC) and Pyeongchang 2018 have also spoke in favour of North Korean participation.

Chang Ung, North Korea's IOC member, said it was likely his country would participate.