North and South Korea have agreed to march together under a single "unified Korea" flag at next month's Winter Olympics in the South.
They also agreed to field a joint women's ice hockey team in rare talks at the truce village of Panmunjom.
These are the first high-level talks between the countries in more than two years.
It marks a thaw in relations that began in the new year when North Korea offered to send a team to the games.
The games will take place between 9 and 25 February in Pyeongchang in South Korea.
If the plans are realised, a hundreds-strong North Korean delegation - including 230 cheerleaders, 140 orchestral musicians and 30 taekwondo athletes - could cross into the South via the land border to attend the Winter Olympics.
It will mean the opening of the cross border road for the first time in almost two years.
The two countries have also agreed to field a joint team for the sport of women's ice hockey. It would be the first time athletes from both Koreas have competed together in the same team at an Olympic Games.
The North has also agreed to send a smaller, 150-member delegation to the Paralympics in March.
The agreement will have to be approved by the International Olympic Committee (IOC) meeting in Lausanne, Switzerland, on Saturday, because North Korea has missed registration deadlines or failed to qualify.
South Korea will also need to find ways to host the North Korean delegation without violating UN Security Council sanctions outlawing cash transfers to Pyongyang and blacklisting certain senior North officials.