Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe met on the sidelines of a summit in the Indonesian capital Jakarta, the official told AFP, speaking anonymously.
It was a significant step following their first meeting at a summit in November last year in China, where they shared an awkward handshake.
However, just before the meeting, Abe, a strident nationalist, stoked fresh regional anger by stopping short of apologising for Japan's World War II rampage through Asia in a speech to the gathering of Asian and African leaders.