North and South Korea are expected to hold a second round of talks on Sunday to reduce the growing tensions.
According to the BBC, the announcement came following hours of negotiations on Saturday.
Senior aides to the two countries' leaders met at the Panmunjom truce village on the border.
North Korea had threatened South Korea with "strong military action" if the latter did not stop border loudspeaker broadcasts that had provoked a "semi-state of war".
The two countries agreed to meet on Sunday to reduce differences following 10 hours of negotiations.
