The United States has however said it will keep a military presence near the demilitarized zone (DMZ) by continuing rotating exercises in the area, South Korea's Yonhap agency reported.

The division will be moved to the south of Seoul's Han River in two phases, Yonhap said.

South Korean authorities have previously opposed the redeployment of the 15,000-strong division to south of the capital, which would take it out of range of a missile or rocket attack launched by the North.

Last week US Deputy Defense Secretary Paul Wolfowitz said the controversial redeployment of US troops in Asia should not wait until the North Korean nuclear issue is resolved.

Some 37,000 US troops are currently stationed in South Korea.

The Korean peninsula has been divided by the heavily armed DMZ since the since the 1950-1953 Korean War.

WAR.WIRE