A UN command spokesman said the deal was the culmination of three years of negotiations aimed at restoring channels of dialogue.

The BBC's South Korea Correspondent Andrew Wood says the UN is being careful not to be too enthusiastic about the new deal

North and South Korea are still technically at war, as no peace treaty was signed after a ceasefire ended the Korean war nearly 50 years ago.

A military armistice commission, known as the Mac, was set up to police the cease-fire agreement, but seven years ago the North boycotted Mac meetings after the UN appointed a South Korean general to head its delegation.

The new agreement was reached after South Korea agreed that an American general would represent the UN.

Although the agreement does not restart the Mac talks, the BBC correspondent in Seoul says it is an important step towards getting what a spokesman called 'eyeball-to-eyeball contact' between senior officers for the first time in seven years.

President Kim's 'sunshine policy'

Meanwhile, the new president of South Korea, Kim Dae Jung, has been in Washington, where he has been urging the United States to ease sanctions against North Korea as part of his 'sunshine policy' aimed at improving relations.

Referring to security concerns over the recent nuclear weapons tests in India and Pakistan, Mr Kim warned against isolating North Korea. As recently as four years ago there was nearly another war over the North's attempts to develop nuclear weapons.

Mr Kim is due to meet President Clinton during his visit.