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SEOUL, South Korea (AP) _ North and South Korea agreed Sunday to restart high-level talks next week, getting their stalled reconciliation process back on track, according to a South Korean new report.

The agreement, reached at three-day meeting at a North Korean mountain resort, called for the two sides to hold Cabinet-level talks in Seoul on Aug. 12-14, said YTN, an all-news cable network.

The talks would be the seventh time Cabinet-level officials have met since 2000, but the first since President Bush labeled North Korea part of an ``axis of evil,'' straining relations between the North and the South.The last such meetings were held at the North Korean mountain resort in November.

This week's working-level talks followed an expression of regret by North Korea for a deadly June 29 naval clash along a disputed sea border which left casualties on both sides.

The conciliatory North Korean gesture came in tandem with moves to improve ties with the United States and Japan. During an Asian regional security forum in Brunei, Pyongyang agreed to reopen normalization talks with Japan and accept a visit by a U.S. envoy.