Malaysia and Indonesia say they have agreed to peacefully revolve a dispute over an off-shore oil field claimed by both countries.
Malaysia's foreign minister, Syed Hamid Albar and his Indonesian counterpart, Hassan Wirayuda met Wednesday night and said both governments agreed to take steps to ease tensions.
A statement said experts from each country will meet in Indonesia later this month to discuss the competing claims to the area of the Sulawesi Sea.
The dispute escalated in February when Malaysia awarded exploration contracts in the area to Royal Dutch/Shell.
Indonesia responded by sending seven warships and four fighter jets to the disputed area. Indonesia's navy says five of the warships have since left the area.