At least one Cambodian soldier killed as two sides clash near disputed Hindu temple.
Both sides however said that they will maintain troops and artillery in the area.
Border tensions escalated following increased rhetoric in recent weeks, with political and military leaders blaming each other for trespassing on to the others’ territory.
The ancient Hindu ruin which is at the centre of the dispute obtained a UN listing as a World Heritage Site in July, a ruling that re-ignited a decades-old feud.
Both countries have long claimed the temple complex but the World Court awarded it to Cambodia in 1962.
Thousands of Cambodian villagers in the area near the Preah Vihear temple have fled their homes amid fears of more violence.
The international community including the US and UK has urged the two countries to show restraint over the standoff.
Cambodia and Thailand have deployed hundreds of troops to the border region, backed by heavy equipment and air support.