The game will take place on the anniversary of Korea's liberation from Japan's colonial rule in a bid to promote cross-border civilian exchanges.
North Korea is set to play the South in a tense football match as the bitter rival nations attempt to build a better relationship.
Cruel dictator Kim Jong-un makes regular nuclear threats to the South, and has made increasingly bold threats towards the United States in recent months.
Earlier this year he even said that the North would "burn Manhattan to ashes" with a hydrogen bomb.
But the secretive nation has now agreed to play bitter rivals South Korea in a match hosted in Seoul, the nation's capital.
The match, proposed by a South Korean civic group, will be held on August 15.
This will mark the anniversary of Korea's liberation from Japan, which had colonial rule of the country between 1910 and 1945.