But analysts warned against expecting any quick resolution to talks aimed at ending North Korea's nuclear programmes that Pyongyang has spurned for the past year because of the tough US crackdown on its offshore funds.

"The DPRK (North Korea) decided to return to the six-party talks on the premise that the issue of lifting financial sanctions will be discussed and settled between the DPRK and the US within the framework of the six-party talks," said a Foreign Ministry spokesman cited by the official KCNA news agency.

The last round of talks between the two Koreas, China, Japan, Russia and the United States broke off in November 2005 after Washington cut Pyongyang's access to the world financial system to punish it for illicit activities such as counterfeiting.

The KCNA report confirmed an announcement in Beijing the previous day of a talks resumption deal reached after seven hours of talks between North Korean, US and Chinese officials.

Japan and the United States, advocates of tough punitive measures against the North after its October 9 nuclear test, both said that sanctions over the test should remain.

Though welcoming the decision, President Bush said he would send teams to Asia to ensure UN Security Council sanctions were enforced on the budding nuclear power.

But South Korea's point man for the North said Seoul, which has taken a much softer line with Pyongyang, would now consider resuming regular food aid to the North, which Seoul suspended in a unilateral gesture after the test blast.

Analysts said North Korea had agreed to return to the talks in part over fears of the impact of a slew of international sanctions, especially those threatened by China, the closest it has to an ally and on which it relies heavily to prop up its impoverished economy.

But the analysts said fresh talks did not mean a change of heart in Pyongyang.

"It really costs them nothing to come back to the table ... I think we have to have very low expectations given the fundamental distrust that exists," said Peter Beck, a Korean affairs expert with the International Crisis Group in Seoul.

He said the imminent US congressional elections, with Bush facing criticism for his North Korea policy, also played a role.

"You are certainly going to make a better impression with the Bush administration if you do it (announce a return to the talks) a week before a close and hard-fought election than a week after an embarrassing defeat."