China and Philippines have agreed to start bilateral talks to resolve their long-standing territorial dispute over South China Sea.

Chinese deputy foreign minister Liu Zhenmin said on Thursday that Chinese President Xi Jinping and visiting Philippine President Rodrigo Duterte have decided to resume bilateral dialogue to address the issue.

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"Both sides agreed that the South China Sea issue is not the sum total of the bilateral relationship," the junior foreign minister stated. "The two sides agreed to return to the approach used five years ago of seeking a settlement through bilateral dialogue."

The Filipino leader is now in the mainland for a four-day state visit, which many described as historic.

The Philippines' 16th President's visit in China is his first state visit outside of ASEAN since he assumed his post in June.

He met his Chinese counterpart Xi Jinping at the Great Hall of the People in the Chinese capital on Thursday.

The two heads of state also agreed to restore diplomatic and defense security communications to improve bilateral relations, said Zhenmin in a press conference in Beijing.

The two leaders have signed more than a dozen agreements for enhancing cooperation in economic, trade, cultural and maritime affairs between the two countries.

TagsSouth China Sea, South China Sea talks, china, Philippines, Rodrigo Duterte