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In a joint press conference, Cambodian Foreign Minister Hor Namhong and his Thai  counterpart Tej Bunnag announced both countries would adjust their troop deployments stationed inside and around a pagoda located in the temple complex.

"We agreed to ask our governments to redeploy the troops. We will decide at our next meeting how many troops will stay in the disputed area," Cambodian Foreign Minister Hor Namhong told reporters.

"The redeployment will only take place once the Thai government approves,"   said the Thai Foreign Minister at the end of the meeting at a hotel in Cambodia's Siem Reap province.

The military adjustment would not affect territorial sovereignty and has no implication to future border demarcation.

The announcement came after the two foreign ministers met earlier on Monday, after which their delegations continued discussions until late in the evening. The two sides began their talks around 10.20am.

The meeting was scheduled to end around 4.30pm, but dragged on until around 10pm. Both delegations had to postpone their flights, pending negotitation.

Talks between Thailand's armed forces chief General Boonsrang Niumpradit and Cambodian Deputy Prime Minister and Defense Minister Tea Banh ended a week ago without resolution.

At least 1,000 soldiers have deployed since July 15 in manifestation of either sides' claim of the 4.6 square km land at the border area.

Further talks will be held to tackle border demarcation in the disputed area and the clearing of landmines in the area.

Both parties also agreed on the need to set up a joint committee to work out the contentious issues, for which cabinet approval would be required from their respective governments.

Thai Foreign Minister Tej said he had informed Prime Minister Samak Sundaravej of the outcome of Monday's talks.