ANKARA: Turkey and Greece have agreed to talks over disputed waters in the eastern Mediterranean, both sides said Tuesday, after diplomatic efforts led by Germany to defuse a crisis that has raised fears of conflict.

A standoff over gas exploration in contested waters has seen the NATO neighbours stage rival war games amid aggressive rhetoric but recent days have seen softer tones, raising hopes for a diplomatic solution. The latest flare-up began in August when Turkey sent the Oruc Reis research vessel to disputed waters near a Greek island accompanied by warships and prolonged the mission three times despite repeated calls from the European Union and Greece to stop.

But on Tuesday, both sides said they were “ready to start exploratory talks” as a three-way videoconference between Turkish President Recep Tayyip Erdogan, German Chancellor Angela Merkel and European Council chief Charles Michel took place Tuesday, the Turkish presidency said.