Pence says the US will continue its "maximum pressure campaign" against Pyongyang but would be open to possible talks at the same time.
The United States may be looking more favourably at diplomatic engagement with North Korea, possibly holding dialogue, as South Korea pushes forward with plans to establish grounds for a rare summit between the two Koreas.
Vice President Mike Pence said in a newspaper interview the US and South Korea had agreed on terms for further diplomatic engagement with North Korea, first with Seoul and then possibly leading to direct talks with Washington without pre-conditions.
The prospect of talks comes after months of tension between Pyongyang, Seoul and Washington over North Korea's nuclear and missile programmes, with US President Donald Trump and North Korean leader Kim Jong-un trading insults and threats of destruction amid tightening sanctions from the UN.
Trump has at times questioned the purpose of further talks with the North after years of negotiations by previous US administrations failed to halt the North's weapons programmes.
Last year, North Korea conducted dozens of missile launches and its sixth and largest nuclear test in defiance of UN Security Council resolutions as it pursues its goal of developing a nuclear-armed missile capable of reaching the US.
Relations between the two Koreas have improved in recent weeks, with Pyongyang agreeing to send its highest ranking delegation ever to attend the Winter Olympic Games, being held in the South Korean resort of Pyeongchang.
The visit included an invitation for South Korean President Moon Jae-in to travel to Pyongyang for talks. Such a meeting, if it came about, would mark the first inter-Korea summit since 2007.
Speaking to the Washington Post aboard Air Force Two on his way home from the Games, Pence said Washington would keep up its "maximum pressure campaign" against Pyongyang but would be open to possible talks at the same time.
“The point is, no pressure comes off until they are actually doing something that the alliance believes represents a meaningful step toward denuclearisation,” Pence was quoted on Sunday as saying. “So the maximum pressure campaign is going to continue and intensify. But if you want to talk, we’ll talk.”
A South Korean government official said Seoul's stance was that separate talks with North Korea by South Korea and the United States should both lead the denuclearisation of the North while sanctions and pressure continue to be applied.
North Korea defends its weapons programmes as essential to counter US aggression, saying regular war drills between the United States and the South are preparations for invasion. The South hosts 28,500 US troops, a legacy of the 1950-53 Korean war.