North and South Korea have agree to march together under a single “unified Korea” flag at next month’s Winter Olympics in the South.
They also agreed to field a joint women’s ice hockey team after rare talks at the truce village of Panmunjom.
These are the first high-level talks between the two Koreas in more than two years.
The Games will take place between 9-27 February in Pyeongchang in South Korea.
Both South Korea’s hockey coach and conservative newspapers had expressed concern about the prospect of a united hockey team, saying it could damage South Korea’s chances of winning a medal.
Japan has also viewed the latest detente with suspicion, saying the world should not be blinded by Pyongyang’s recent “charm offensive”.
The talks follow recent rapid advances in the North’s nuclear and conventional weapons programmes.