US President Donald Trump welcomes the statement by North Korea and says he looks forward to a summit with Kim Jong-un.
North Korea said on Saturday it has suspended nuclear and long-range missile tests and plans to close its nuclear test site.
The North's official Korean Central News Agency said the country is making the move to shift its national focus and improve its economy.
The North also vowed to actively engage with regional neighbors and the international community to secure peace in the Korean Peninsula and create an "optimal international environment" to build its economy.
TRT World's Philip Owira reports.
The announcements came days before North Korean leader Kim Jong-un is set to meet South Korean President Moon Jae-in in a border truce village for a rare summit aimed at resolving the nuclear standoff with Pyongyang.
A separate meeting between Kim and US President Donald Trump is anticipated in May or June.
Trump welcomed the statement by North Korea and said he looked forward to a summit with Kim.
"North Korea has agreed to suspend all Nuclear Tests and close up a major test site. This is very good news for North Korea and the World - big progress! Look forward to our Summit," Trump said in message on Twitter.
North Korea has agreed to suspend all Nuclear Tests and close up a major test site. This is very good news for North Korea and the World - big progress! Look forward to our Summit.— Donald J. Trump (@realDonaldTrump) April 20, 2018
The North's decisions were made in a meeting of the ruling party's full Central Committee which had convened to discuss a "new stage" of policies.
The Korean Workers' Party's Central Committee declared it a "great victory" in the country's official "byungjin" policy line of simultaneously pursuing economic and nuclear development.
The committee unanimously adopted a resolution that called for concentrating national efforts to achieve a strong socialist economy and "groundbreaking improvements in people's lives."
"To secure transparency on the suspension of nuclear tests, we will close the republic's northern nuclear test site," the party's resolution said.
The agency quoted Kim as saying during the meeting: "Nuclear development has proceeded scientifically and in due order and the development of the delivery strike means also proceeded scientifically and verified the completion of nuclear weapons.
"We no longer need any nuclear test or test launches of intermediate and intercontinental range ballistic missiles and because of this the northern nuclear test site has finished its mission."
North Korea's abrupt diplomatic outreach in recent months came after a flurry of weapons tests, including the underground detonation of a possible thermonuclear warhead and three launches of developmental intercontinental ballistic missiles designed to strike the US mainland.
Some analysts see Kim as entering the upcoming negotiations from a position of strength after having declared his nuclear force as complete in November. South Korean and U.S. officials have said Kim is likely trying to save his broken economy from heavy sanctions,
Seoul says Kim has expressed genuine interest in dealing away his nuclear weapons. But North Korea for decades has been pushing a concept of "denuclearisation" that bears no resemblance to the American definition, vowing to pursue nuclear development unless Washington removes its troops from the peninsula.