According to the EU, Serbia and Kosovo have settled a dispute over the validity of their citizens' identity papers when crossing the border.
"We have an agreement," said EU foreign policy chief Josep Borell on Twitter on Saturday.
During the dialogue brokered by the EU, Serbia agreed to abolish special entry and exit documents for people with Kosovo passports.
Kosovo has promised not to introduce such papers for people with Serbian passports.
All citizens would now be able to travel freely between Kosovo and Serbia with their respective ID cards, Borrell said.
Muslim Kosovo declared its independence from Serbia in 2008.
Germany and a majority of the member states of the United Nations recognize the Republic of Kosovo.
However, Serbia still regards Kosovo as its part of the country.
Around five percent of the 1.8 million Kosovars are Serbs.
In the past there have been blockades and clashes between the Serb minority and security forces in the border area.
The EU's mediation between the former wartime enemies had made little progress in recent years.