South and North Korea have come to an agreement in talks to ease tensions in the latest crisis on the peninsula, South Korean news broadcaster has YTN reported.

The deal comes after North Korea expressed regret over a landmine incident that wounded two South Korean soldiers this month, the two sides said in a joint statement issued on Tuesday.

In return, South Korea will stop anti-North propaganda broadcasts at noon on Wednesday, the statement said.

The two countries also agreed to work towards a resumption next month of reunions for families separated by the 1950-53 Korean War, National Security Adviser Kim Kwan-Jin, the South's lead negotiator, told reporters.

The negotiations in the border truce village of Panmunjom had played out against a dangerous military stand-off, which triggered a rare artillery exchange over the border last week.

North Korean leader Kim Jong-Un order his frontline troops onto a war-footing on Friday while Seoul warned that it would "retaliate harshly" to any acts of aggression.

The talks had begun early on Saturday evening, shortly after the passing of a North Korean deadline for Seoul to halt its propaganda broadcasts or face military action.

Source: Agencies