North Korean leader Kim Jong-un is reopening a key cross-border communication channel with South Korea for the first time in nearly two years, as the rivals explore the possibility of sitting down and talking after months of acrimony and fears of war.

Key points: The hotline has been closed for almost two years

The hotline has been closed for almost two years The talks could pave the way to North Korean participation in the Winter Olympics

The talks could pave the way to North Korean participation in the Winter Olympics US said it would not take such talks between the two Koreas seriously

The announcement, which was read by a senior Pyongyang official on state TV, followed a South Korean offer on Tuesday of high-level talks with the North to find ways to cooperate on next month's Winter Olympics in the South and discuss other inter-Korean issues.

That followed Mr Kim's New Year's address, in which he said he was willing to send a delegation over the border to the Games.

The recent softening of contact between the rival Koreas may show a shared interest in improved ties, but there's no guarantee tensions will ease.

In his address, Mr Kim also said he has a "nuclear button" on his desk and that all US territory is within striking distance of his nuclear weapons, comments US President Donald Trump latched onto when he boasted of a bigger and more powerful "nuclear button" than Mr Kim's.

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There have been repeated attempts in recent years by North and South Korea to talk, but even when they do meet, the efforts often end in recriminations and stalemate.

Outside critics say Mr Kim may be trying to use better ties with South Korea as a way to weaken the alliance between Washington and Seoul as the North grapples with toughened international sanctions over its nuclear and missile programs.

The hotline between the two rival countries has been closed for almost two years. ( Reuters: KCNA )

In the latest announcement, Ri Son Gwon, chairman of the state-run Committee for the Peaceful Reunification, quoted Mr Kim as ordering officials to promptly take substantial measures with South Korea out of a "sincere stand and honest attitude".

South Korea quickly welcomed Mr Kim's decision and later confirmed that the two Koreas began preliminary contacts on the channel.

A wedge between Seoul and Washington

Since taking office last May, South Korea's liberal President Moon Jae-in has pushed hard to improve ties and resume stalled cooperation projects with North Korea.

Pyongyang had not responded to his outreach until Mr Kim's New Year's address.

Relations between the Koreas soured under Mr Moon's conservative predecessors, who responded to the North's expanding nuclear program with hard-line measures.

All major rapprochement projects were put on hold one by one, and the Panmunjom communication channel has been suspended since February 2016.

US officials had voiced scepticism about the possibility of meaningful talks, particularly if they did not take steps towards banning North Korea's nuclear weapons.

Nikki Haley, the US Ambassador to the United Nations, warned North Korea against staging another missile test and said Washington was hearing reports that Pyongyang might be preparing to fire another missile.

The Trump administration has said all options are on the table, including military measures against the North.

Mr Moon has repeatedly said he opposes any war on the Korean Peninsula.

Some observers believe these differences in views may have led Mr Kim to think he could drive a wedge between Seoul and Washington as a way to weaken their alliance and international sanctions.

Talks could provide a temporary thaw in strained inter-Korean ties, but conservative critics worry that they may only earn the North time to perfect its nuclear weapons.

After the Olympics, inter-Korean ties could become frosty again because the North has made it clear it has no intention of accepting international calls for nuclear disarmament and instead wants to bolster its weapons arsenal in the face of what it considers increasing US threats, analysts say.

Sorry, this video has expired Kim Jong-un says US will never start war against North Korea

AP/Reuters