Kim Jong-un‘s rogue state started a rare dialogue with Seoul last week following months of heightened tensions in the region.
But negotiations scheduled for this weekend have been dramatically called by officials in Pyongyang, according to reports.
The reclusive North has not give a reason for the cancellation, the Yonhap news agency said.
Nuclear-mad despot Kim has repeatedly threatened to spark World War 3 and has refused to stop the North’s provocative missile tests.
The talks would have centered around North Korea‘s plans to send a 550-delegation to South Korea for next month’s Winter Olympics.
Earlier this week North and South Korea agreed to march under a ‘unity flag’ at the Games, to be held in Pyeongchang County.
The nations also agreed to form a joint North and South Korean women’s ice hockey team, in a further highly symbolic move.
North Korea’s delegation is expected to start arriving in Pyeongchang from January 25, with the Games taking place between February 9 and 25.
Pyongyang has agreed to send a separate 150-strong delegation to the Paralympics which are held in March.
Officials agreed to strike closer diplomatic ties for the events following high-levels talks at the demilitarised zone (DMZ).
However, the move has proved widely controversial in South Korea, sparking a public backlash against President Moon Jae-in.
According to a Gallup Korea opinion poll published earlier today, his approval rating has fallen to 67 per cent, a four-month low.
The figure is down from last week’s 73 percent and the second-lowest ever after the rating stood at 65 percent in late September last year.
Moon was elected to office last May with a high approval rating after his predecessor, Park Geun-hye, was ousted from office over a corruption scandal.