North Korea has expressed "regret" for a lethal naval clash with the South and is proposing to resume a stalled dialogue.

Pyongyang broadcast a message sent to South Korea proposing the two sides resume working-level talks next month.

The broadcast appeared to reverse North Korea's earlier brinkmanship over last month's maritime skirmish in the Yellow Sea, which the Stalinist country blamed on Seoul and the United States.

In a further hint of diplomatic softening, North Korea's Foreign Minister Paek Nam Sun was set to meet his Japanese counterpart on the sidelines of a regional security meeting in Brunei, which starts on Friday, according to both sides' foreign ministries.

It would be the first such high-level meeting between the countries in two years.

There are also reports that on Monday Mr Paek may meet US Secretary of State Colin Powell, who is also due to attend the meeting of the Association of South East Asian Nations (Asean).

August meeting

North Korea has proposed working-level talks in early August at the Diamond Mountain resort on the east coast of the Stalinist country, according to the radio broadcast.

	Northern Limit Line Declared by UN in 1953 Not recognised by North Regularly breached by North's navy See also: Unresolved conflict

The agenda would include a North-South railway link and the issue of families separated during the Korean War.

Such talks would pave the way for cabinet-level negotiations in Seoul, the broadcast said.

South Korea's presidential Blue House said it would assess the message.

"Our government will thoroughly look into it and then decide our position," said spokeswoman Park Sun-sook, according to Yonhap news agency.

But Seoul said it viewed the expression of "regret" over the incident as an apology.

Blowing hot and cold

The proposal came in stark contrast to a warning from the North Korean Foreign Ministry on Wednesday. The ministry said there could be further naval clashes unless what it views as an illegal border known as the Northern Limit Line is abolished.

Pyongyang has appeared to soften its stance on the 29 June naval clash before, only to revert to threats days later.

On 4 July, the North said it wanted to reduce tension and hold bilateral talks, but days later it was accusing the South of infiltrating its waters and told Seoul it must be informed of the South's plans to salvage the boat lost in the battle.

Four South Korean sailors and an estimated 30 North Koreans were killed in the clash - the two sides' worst maritime clash for three years.