The country's plan to send an art troupe to the Games was the main item on the agenda at a meeting between the two nations in Panmunjeom, the second set of high-level talks in less than a week.

South Korea's Unification Ministry confirmed the Samjiyon Orchestra from North Korea would hold concerts in Gangneung, the home of ice sports at Pyeongchang 2018, and in Seoul.

The exact details are still to be ironed out, a joint statement reported by South Korean news agency Yonhap said.

But the news represents a further demonstration of the thawing of tensions between the two countries, which began when North Korean leader Kim Jong-un said the country were willing to participate at Pyeongchang 2018 on January 1.

"The two sides plan to discuss details including the venue, stage conditions and other matters through consultations," read the statement.

"In this regard, the North will send an advanced team at an early date."

Hyon Song-wol, the lead singer of North Korean pop group Moranbong Band, was also reportedly in attendance at the talks.

It has fuelled speculation that the all-female band, one of the most popular groups in the country, may appear in some capacity at the Games.

The two countries were also thought to have discussed the proposed joint women's ice hockey team at today's meeting, held in the demilitarised zone which is also known as the Joint Security Area.

This will also be on the agenda at a four-party meeting, involving representatives from North and South Korea and which is due to be chaired by International Olympic Committee President Thomas Bach, to discuss North Korean participation at Pyeongchang 2018 in Lausanne on Saturday (January 20).

Pairs figure 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.

This will also be discussed at the meeting in Lausanne, along with questions regarding the flag, anthem and uniform at the Opening and Closing Ceremonies. 

South Korean Prime Minister Lee Nak-yon suggested that as many as 500 North Koreans could attend the Winter Olympics, including athletes, supporters, art performers, observers, a taekwondo demonstration team and journalists.

Police have revealed they plan to step up security plans for the North Korean delegation at the Games.

Lee Cheol-seong, head of the National Police Agency, told Yonhap that they would start their security operation as early as next week in preparation for the visit of the North Koreans.

Places where North Koreans are staying and those where people from the country are due to visit will be guarded by a SWAT team, Lee added.

"The exact number of the North Korean delegation is expected to be fixed in the coming weekend," he said.

"The police will make full efforts to maintain watertight security for North Korean visitors."

Further talks are scheduled to be held between North and South Korea this week.