North Korea has said it will send a delegation to the 2018 Winter Olympic Games, taking place in South Korea in February, says Seoul.
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 a cheer squad.
South Korea also proposed holding family reunions during the Winter Olympics for people separated by the Korean War
The issue is a highly emotional one for both countries, and South Korea has constantly been pushing for more reunions to take place.
The reunions are expected to take place during the Lunar New Year holiday, which falls in the middle of the Pyeongchang Games.
Seoul also called for athletes from both Koreas to march together at the opening ceremony of the Olympic Games. It's not yet known how North Korea responded to those offers.
The last time both countries marched together under the Korean Peninsula flag was more than 10 years ago, at the 2006 Winter Olympics.
The talks began early Tuesday in the Panmunjom "peace village" in the demilitarised zone (DMZ) at the border.
South Korea's Pyeongchang chief had said last year that North Korean athletes would be allowed to cross the demilitarised zone into South Korea to compete in the Winter Olympics.
The South then proposed high-level talks to discuss the North's participation, but the North only agreed to the talks after the US and South Korea agreed to delay their joint military exercises until after the Olympics. The North sees the annual drills as a rehearsal for war, reports BBC.