President Roh Moo-hyun will visit the DPRK’s capital Pyongyang for a meeting with the DPRK's leader Kim Jong-il between 28-30 August.

The summit comes seven years after the first one, when Mr Kim met then-RoK President Kim Dae-jung.

The RoK's presidential security adviser, Baek Jong-chun, said the meeting was finally agreed after senior intelligence officials had made two trips to the north.

RoK's presidential office said in a statement: "The second inter-Korean summit will contribute to substantially opening the era of peace and prosperity between the two Koreas."

Meanwhile, the DPRK’s Central News Agency released a statement confirming that an agreement had been signed on Sunday.

"The meeting between the top leaders of the north and the south will be of weighty significance in opening a new phase of peace on the Korean peninsula," the statement said.