Delegations from Khartoum and Juba met in Addis Ababa to continue talks to stop hostilities along the shared border.
This is the first time the Sudanese and South Sudanese delegations have come together since the most serious case of fighting since secession broke out last week.
Sudanese defence minister Abdel-Rahim Mohamed Hussein came out of a meeting with the South Sudanese defence minister saying the only option for both countries is peace.
Hussein said the meeting had been fruitful and the countries have no choice but to work for peaceful coexistence.
The South Sudanese defence minister John Kong Nyuon said they were keen to reach an agreement to stop military operations along the border.