"We are assisting peshmerga forces to cross into Kobane," Turkish Foreign Minister Mevlut Cavusoglu told reporters in Ankara, adding that talks on the issue were ongoing but without giving further details.
"We have no wish at all to see Kobane fall" to the jihadists, he added.
The announcement represented a major switch by Turkey, which until now has refused to allow Kurdish fighters to cross its border to join the fight for Kobane just a few kilometres to the south.
However Turkey in the last years has built up strong relations with the Kurdish authorities in the Kurdistan region of Iraq who control the peshmerga forces.
It appears that despite the agreement over the peshmerga, Turkey will still block any PKK fighters from entering Syria.
Turkey has come under increasing pressure over the last month to step up its support for the international coalition fighting the Islamic State (IS) jihadists.
But Ankara has so far refused to use its own troops or even let US forces launch their bombing raids on IS from the Incirlik air base in the nearby Adana province.
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