Thailand and Cambodia say they are keen to ease border tensions after hundreds of Thai troops were sent to a disputed border crossing in Ubon Ratchathani's Nam Yuen district to prevent Cambodia from doing construction work in the contested area.
A Second Army source said the two sides have called talks for next Wednesday which will include representatives from foreign ministries and military commanders from the countries' border areas.
The talks would take place at the Chong Arn Ma temporary border pass where the conflict started.
Earlier, Thailand ordered the border pass closed after Cambodian authorities brought in heavy machinery to dig a new road in the area considered a watershed line.
Ubon Ratchathani governor Serm Chainarong sent a letter of protest to Preah Vihear governor Oam Mara.
Thai and Cambodian army officers met on Wednesday. Thailand insisted Cambodia halt its work, and Cambodia agreed.
The source said Thailand agreed to open the Chong Arn Ma border pass after Cambodian Defence Minister Tea Banh called his Thai counterpart Prawit Wongsuwon. However, locals are avoiding the pass out of fears of violence.
"Relations between the two countries have greatly improved but we will not let them take our land," he said.
The Phnom Penh Post reported that Un Chinda, the deputy governor of Preah Vihear province, said Cambodia has not boosted its troop levels in the area. Thailand claims the area is neutral territory, but Cambodia claims it as its own.
Mr Chinda said about 200 Thai soldiers have been deployed there.
He told the newspaper that Cambodia agreed to postpone its road project, but refused to refill land already dug up "because it is under Cambodian sovereignty".