The battle over the license plates, and which country has the right to issue them, has been going on for almost two years.
The issue of national license plates is fraught as the exercise of authority signals that Kosovo is an independent state - which is not recognized by Serbia.
In Kosovo's capital Pristina, efforts have been made to establish a gradual transition to remove the Serbian car registration.
The aim was for all license plates to be completely replaced with Kosovo's own by April 2023, and as of 29 November it had planned to fine those Kosovo Serbs still driving with Belgrade-issued license plates.
The decision sparked strong reactions from the Serb minority in northern Kosovo, and tension between the areas has risen significantly in recent months.
During November, almost 600 Kosovo Serb police officers resigned in the area and the area is now patrolled by EU police officers who do not have the right to intervene.
Borrell: Joint action plan pending
After initially holding separate talks with Serbian President Aleksandar Vučić and Kosovo Prime Minister Albin Kurti, the three parties gathered at the same table in Brussels under the leadership of Josep Borrell.
After persistent discussions, and a harsh jargon in the public after the negotiations, Borrell now announces that they have agreed on a solution.
- I will invite the parties in the coming days to discuss the next step, writes Borrell on Twitter.
Serbia to stop producing license plates with Kosovo's emblem.
Kosovo withdraws plans to fine those who do not switch to Kosovar plates.
The countries must jointly present an action plan for implementation in the coming days.