MOSCOW, August 28 (RIA Novosti) - Delegations from North and South Korea agreed at talks on Friday to hold reunions in late September of families separated by the Korean War more than half a century ago.

The deal was reached on the third and final day of talks in North Korea's Mount Kumgang (Diamond Mountain) resort.

"The South and the North will continue to cooperate on the issue of separated families and other humanitarian issues involving the Red Cross," the sides said in a joint statement quoted by Yonhap news agency.

The meetings will take place at a hotel on Mount Kumgang from September 26 to October 1, shortly before the Korean holiday of Chuseok, and will involve around 200 families separated during the 1950-1953 war. The last such reunion was held in 2007.

Yonhap said South Korea had backed down on its demand that prisoners of the Korean War still believed to be held in North Korea be included in the reunion. Pyongyang denies that any of them are still in detention.

The agreement is the latest gesture aimed at rebuilding relations, along with North Korea's release of a South Korean worker at the Kaesong industrial complex, and the lifting of cross-border transit restrictions.

Last Sunday a North Korean delegation visited Seoul for the funeral of former South Korean President Kim Dae-jung, remembered for his work to repair inter-Korean ties.