China has added North Korea to its list of approved destinations for Chinese tour groups, state news Xinhua said.
The decision means Chinese travel agencies will be able to organise and promote tourism in the largely closed, reclusive neighbour and ally.
North Korean tourism agencies will also be allowed to open offices in the north-eastern Chinese city of Shenyang.
The move could help North Korea recover from a recent loss of South Korean tourist revenues.
North Korea maintains strict visa restrictions and controls on the movements of foreigners in its territory; it also lacks extensive tourism infrastructure.
South Korea had run a regular tour programme to the North's Diamond Mountain resort, but these were suspended after a 53-year old South Korean woman tourist was killed there by a North Korean soldier there in July.
South Korean tourists still visit the historic North Korean town of Kaesong.
Chinese tourists have been able to take day-trips across the Yalu river to the North Korean city of Sinuiji, but the new ruling will allow far more Chinese to travel and stay in the traditionally closed state.
China's National Tourism Administration (NTA) said tours would start "at an appropriate time after the two countries negotiate details and sign official agreements".
The NTA's deputy head Du Jiang visited North Korea last Friday.
On Tuesday he was reported by Xinhua as saying that 2009 - the 60th anniversary of the establishment of Chinese-North Korean relations - would be a good time to enhance tourism co-operation.
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