South Korean reports of the summit, which were confirmed by the North's official news agency, follows this year's agreement by Pyongyang with regional powers to move towards ending its nuclear weapons programme in return for massive aid.
The first summit between then South Korean President Kim Dae-jung and current North Korean leader Kim Jong-il, in 2000, led to decreased tension and unprecedented cooperation between the two states.
That summit, also in Pyongyang, earned Kim Dae-jung the Nobel Peace Prize.
In Seoul, chief presidential National Security Adviser Baek Jong-chun told reporters this month's summit would ''expand and develop the South-North ties to a higher level''.
Analysts have said that South Korean President Roh Moo-hyun has long been pressing for such a summit to secure his legacy as his largely unpopular term nears its end.
North Korea carried out its first nuclear test last year, stoking regional tension. But the reclusive and impoverished state has shut down its nuclear reactor and source of material for atomic weapons following the disarmament pact agreed by six nations in February.
However, Lee Dong-bok, a senior associate at the CSIS think-tank, said the summit would not quicken six-party negotiations because South Korea has little leverage in the process.
''The summit appears to have more to do with South Korea's presidential election in December,'' Lee said. ''Whether the left-wing government in South Korea is surviving is a key concern for North Korea, too. The summit could provide a political boost to the current ruling party and its partners.'' Masao Okonogi, a Korea specialist at Tokyo's Keio University, also had doubts about the benefits of the planned summit.
''From the perspective of the South Korean people, it probably looks as if Roh is trying to make capital ahead of the presidential election,'' Okonogi said.
''There is concern that Roh may make some sort of excessive or strange commitment, and cause problems later.'' Reuters RC VP0725