The Thai and Cambodian authorities have agreed to an immediate ceasefire, Malaysian Prime Minister Anwar Ibrahim said.

"Both countries have agreed to an immediate and unconditional ceasefire," Ibrahim said at a news conference after talks in the Malaysian capital Kuala Lumpur.

Relations between Cambodia and Thailand have deteriorated ever since an armed incident on May 28. That day, Thai soldiers opened fire on a Cambodian military position located in the disputed territory between the Cambodian province of Preah Vihear and the Thai province of Ubon Ratchathani, in Techo Morakot village in Choam Ksan District. One Cambodian soldier was killed and several others were injured in the incident.