By Caroline Gluck BBC Seoul correspondent

North and South Korean officials have agreed to establish a permanent reunion centre for families separated since the division of the peninsula over half a century ago.

The two sides said they would also consult on setting up a second permanent centre.

The agreement came on the final day of talks between officials from the two Korean Red Cross societies at the North's remote Mount Kumgang resort.

Kumgang will host reunions next week

South Korea has long been pushing for a permanent meeting centre for separated family members.

Nearly eight million South Koreans have relatives in the North.

The two counties still remain technically at war, and it is impossible for civilians to telephone or send a letter to relatives on the other side of their heavily-fortified border.

Frail and elderly

Since the historic Korean summit, two years ago, there have been four tightly-controlled reunions between the two sides, involving 800 people, with another reunion due to take place in the North next week.

Many of the separated relatives are frail and elderly, and thousands die every year before getting the chance to be reunited with long-lost loved ones.

Until recently, the North had been reluctant to approve setting up a permanent meeting centre, so the latest news is seen as another encouraging sign of progress in reconciliation efforts between the two Koreas.

The Koreas have recently agreed to restore rail links

Red Cross officials agreed to build one permanent centre at the Kumgang resort, otherwise known as the Diamond Mountain. The South will supply construction materials and the North, the labour.

The South had been pushing for a second centre, near their border. It had proposed one close to a cross-border railway, which is being rebuilt.

In the event, the two sides only agreed to consult on that plan once the railway is reconnected, possibly by the end of the year.