If they were to go ahead, they would be the first high-level talks since 2015.
A senior official said talks should aim to stop “all hostile activities that raise military tension” at the fortified border between the Koreas.
South Korea’s President Moon Jae-in has long signalled he wants closer engagement with the North.
North Korea has not responded to the South’s proposal yet.
In a recent speech in Berlin, Mr Moon said dialogue with the North was more pressing than ever and called for a peace treaty to be signed.
He said such dialogue was crucial for those who seek the end of Pyongyang’s nuclear weapons programme.
However, the North’s frequent missile tests, including the most recent one of an intercontinental ballistic missile, are in consistent violation of UN resolutions and have alarmed its neighbours and the US.