North Korea's apparent show of unity with the South is being met with surprise and some scepticism.

The two countries signed an armistice in 1953, ending the war between them, but there's never been a peace treaty.

Now they've agreed to march under the same flag at the Winter Olympics in South Korea next month.

One News correspondent Rebecca Wright told Nadine Higgins some think it shows sanctions against the North are working, and it's a step towards a de-escalation of tensions.

Others say it's just a play for time, as North Korea continues its military and missile programs.

"It's being treated as a small step in the right direction but by no means a game changer."

The agreement between the rivals will see them form their first unified Olympic team and have their athletes parade together for the first time in 11 years.

The agreements still require approval from the International Olympic Committee, but the move has been seen as the most prominent steps toward rapprochement achieved by the Koreas following a year of heightened tension over the North's nuclear weapons program.

During their third day of talks at the border in about a week, senior officials reached a package of agreements including fielding a joint women's ice hockey team and marching together under a blue and white "unification flag" depicting their peninsula in the opening ceremony, Seoul's Unification Ministry said.

A joint statement distributed by the ministry said the North Korean Olympic delegation will travel to South Korea across their heavily fortified land border before the Feb. 9-25 Pyeongchang Games. It said the delegation will include a 230-member cheering group, a 30-member taekwondo demonstration team, journalists, athletes and officials.

Ahead of the Olympics, the Koreas will hold a joint cultural event at the North's scenic Diamond Mountain and have non-Olympic skiers train together at the North's Masik ski resort, according to the statement. It said the North also plans to send a 150-strong delegation to the Paralympics in March. The North earlier said it would send a 140-member art troupe.

"If South and North Korea form one team and compete in the games, that will be an everlasting historic event, which I think will move our people and people around the world," South Korean President Moon Jae-in said Wednesday.

LISTEN TO REBECCA WRIGHT TALK WITH NADINE HIGGINS ABOVE