Generals from Thailand and Cambodia are to hold talks in an attempt to resolve a border dispute which led to soldiers exchanging shots and rocket-fire.
Cambodia claims two of its soldiers were killed on Wednesday in clashes near the ancient Preah Vihear temple.
The fighting prompted Thailand to urge its nationals to leave Cambodia.
Tensions have been high since July, when hundreds of soldiers on both sides faced off metres apart, but both sides say they want a peaceful solution.
Thailand and Cambodia both claim they own the area around the temple, which became a Unesco World Heritage site in June, reigniting lingering nationalist tensions.
The two countries have failed to reach a settlement, despite several rounds of talks.
Cambodian Foreign Minister Hor Namhong said the talks scheduled for Thursday were a good sign. He described this week's clash as "an incident between soldiers and not an invasion by Thailand".
UN General Secretary Ban Ki-moon said he was "deeply concerned" by the violence and urged both sides to show restraint.
'Good neighbour'
Both sides claim the other opened fire first on Wednesday, in an exchange that lasted about an hour. Cambodian Foreign Minister Hor Namhong said two soldiers had been killed and two wounded while Thai officials said five Thai troops had been wounded.
Cambodia also claimed that 10 Thai soldiers had been captured, but this was denied by Bangkok.
After fighting broke out, Thailand alerted air force jets and readied transport planes to evacuate Thai nationals from Cambodia.
But Thai Prime Minister Somchai Wongsawat said the fighting was "small scale" and that he was committed to reaching a settlement over the issue with Cambodia, which he described as "a good neighbour".
'Death zone'
The military stand-off began in July when Cambodian troops detained three Thai protesters who had entered the site illegally.
More than 1,000 soldiers from both countries moved into the area, digging trenches into the rough terrain around the temple.
Cambodia claimed that Thai troops had recently returned to the area after both sides agreed in August to withdraw their personnel.
Thailand has denied that its troops entered Cambodian territory.
But on Tuesday, Cambodian Prime Minister Hun Sen threatened to turn the area into a "death zone" if the Thai troops did not withdraw.
The dispute centres on 1.8 square miles (4.6 sq km) of scrub near the 900-year-old Preah Vihear temple.
The temple is only accessible from Thailand and the area around it is heavily mined - a legacy of Cambodia's long war against the Khmer Rouge guerrillas.
An international court awarded the temple to Cambodia in 1962, but land surrounding it remains the subject of rival territorial claims.
Disputes between the two countries date back centuries when the Thai and Khmer monarchs fought each other for territory and power.Source : http://news.bbc.co.uk
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