The working-level talks - which would be the first official contact between the two Koreas since South Korea's conservative, pro-US President Lee Myung Bak took office in February - come amid concerns about the North's push to reassemble its nuclear programme.

The North surprised Seoul by proposing the talks last week, breaking a seven-month-long deadlock in inter-Korean relations.

South Korea sent a message back to the North on Sunday making a counterproposal to hold the talks in early October, the Yonhap news agency reported, citing an unidentified government official.

The exact date was not immediately available, but Yonhap said it could be Thursday or Friday.

Defence Ministry spokesman Won Tae Jae said on Monday that the two sides 'are in contact' but he declined to confirm Yonhap report. -- AP