South Korean has offered high level talks with North Korea on 9 January to discuss its possible participation in the 2018 Winter Olympic Games.
It comes after the North's leader Kim Jong-un said he was considering sending a team to Pyeongchang in South Korea for the Games in February.
He said the two sides should "urgently meet to discuss the possibility".
South Korea's president said earlier he saw the offer as a chance to improve the highly tense relationship.
South Korean Unification Minister Cho Myoung-gyon proposed on Tuesday that representatives could meet at Panmunjom, the so-called "truce village".
The village, in the heavily guarded demilitarised zone (DMZ) at the border, is where the Koreas have historically met.