The announcement was made by the North's Kim Jong-un and Moon Jae-in of South Korea after talks at the border.
The two also agreed to push towards turning the armistice that ended the Korean War in 1953 into a peace treaty this year.
It comes just months after warlike rhetoric from North Korea.
Details of how denuclearisation would be achieved were not made clear and many analysts remain sceptical about the North's apparent enthusiasm for engagement.
Other points the leaders agreed on in a joint statement were:
- An end to "hostile activities" between the two nations
- Changing the Demilitarised Zone that divides the country into a "peace zone" by ceasing propaganda broadcasts
- An arms reduction in the region pending the easing of military tension
- To push for three-way talks involving the US and China
- Organising a reunion of families left divided by the war
- Connecting and modernising railways and roads across the border
- Further joint participation in sporting events, including this year's Asian Games
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