SEOUL. Sept 8: North Korea has agreed with the United States to hold talks next month aimed at formally ending the 1950-53 Korean war, Seoul government sources said today, reports AFP.

The two countries also decided to re-start bilateral talks on curbing missile proliferation next month after they were abruptly cancelled last year when two North Korean diplomats requested asylum in the United States.

The apparent breakthrough came in talks between the two sides In New York amid growing worries over Pyongyang's missile capabilities and as its opaque government became more dominated by the military.