North and South Korea have agreed to form their first joint Olympic team and will march together under a unified flag during the opening ceremony, South Korea has announced. 

The two Koreas agreed to form a combined women's ice hockey team to take part in next month's Winter Olympics in PyeongChang in the South next month. 

Seoul's Unification Ministry says the agreement was during talks on Wednesday at the border village of Panmunjom.

It said athletes from the two Koreas will march together under a 'unification flag' depicting their peninsula during the opening ceremony.

Pictures of South Korean President Moon Jae-in, left, and North Korean leader Kim Jong-un are seen on a sign during a rally for a peaceful Winter Olympics in Seoul on Tuesday