It sent a message through the truce village of Panmunjom, saying it would meet representatives of the American-led United Nations Command in South Korea, possibly as early as Tuesday.

The UN Command described the decision as a positive step and said it was in everyone's interests to reduce tensions.

South Korea says the North has now withdrawn its vessels from the disputed waters.

Repeated confrontations

For almost a week, North Korean naval vessels repeatedly crossed the maritime demarcation line established at the end of the Korean War in 1953 to escort fishing boats into the area.

Each side had its guns trained on the other

On Friday, South Korean vessels repeatedly rammed three North Korean patrol boats in an effort to drive them from the area. Seoul's joint chiefs of staff called it "a bump and push tactic".

The following day, North Korean patrol boats were again reported to have entered the zone.

'Provocation'

Each side has accused the other of crossing the Maritime Demarcation Line, drawn up by the UN Command at the end of the 1950-53 war.

The area in question, midway between the North Korean mainland and five islands owned by the South, is only 100 km (60 miles) from Seoul.

The North said the South Korean authorities were engaged in "reckless provocations", despite repeated warnings, and warned that it would launch "self-defensive strikes" to protect its sovereignty.

South Korea's Yonhap news agency, quoting naval sources, said on Saturday that, should North Korean boats make a pre-emptive attack, the Navy would launch an immediate counter-attack to sink them.

Crabs and sabre-rattling

South Korean fishermen have been ordered to stay away

North Korean patrol boats frequently accompany fishing vessels into the contested zone during the crab-fishing season, so the poverty-stricken communist state can earn some much-needed hard currency.

Correspondents say the North's patrol boats usually withdraw when confronted by the South's navy, but on Friday they refused to back down.

The two Koreas are still officially at war, having signed no peace treaty after the 1953 armistice.