Recent weeks saw a rising tide of angry rhetoric from the North over activist plans to send leaflets with anti-North Korean messages over the border.
Last week the North blew up the joint liaison office and also threatened to send troops to the border area.
But at a meeting chaired by leader Kim Jong-Un, state media said the decision was taken to suspend military action.
The Central Military Commission made its decision after taking what it called the prevailing situation into consideration.
It represents a notable de-escalation in rhetoric after KIM’s sister, Kim Yo-Jong’s orders to the army to decisively carry out the next action in part because of what Pyongyang said was Seoul’s failure to stop activists floating balloons with anti-regime leaflets over the border.