North Korea pulls back from ordering missile strike just off US island of Guam

North Korea's leader has pulled back from a ordering missile strike just off the US territory of Guam but warned that he could still go ahead if Washington continues with "reckless actions" on the Korean peninsula.

Kim Jong-un was briefed by military chiefs on its plans to create "enveloping fire" by setting off rockets into the waters a few miles off the American military hub in the Pacific.

News agencies quoted him as saying he would observe the "foolish and stupid conduct of the Yankees" a little more before deciding whether to order a test launch.

His decision to hold fire - at least for the present - will defuse tensions in a stand-off that had threatened to boil over into a military conflict setting the world's biggest power against a rogue nuclear state.

However, planned US military drills with South Korea next week could test efforts to find a diplomatic solution to the crisis.

North Korea had threatened for fire missiles just off the US island of Guam. Credit: AP

Mr Kim was seen examining military plans for a strike, poring over a map apparently showing the proposed flight route passing over Japan to Guam, in photos published last night by the state-run Korean Central News Agency.

He said he would order the launches to go ahead if the "Yankees persist in their extremely dangerous, reckless actions on the Korean Peninsula and its vicinity," and that the United States should "think reasonably and judge properly" to avoid shaming itself, the news agency said.

The North Korean response had been welcomed by leaders in Guam, and will also be met with relief by regional powers in Asia.

The Japanese leader Shinzo Abe said he had discussed the situation with Donald Trump and they Trump "agreed in our recognition that preventing North Korea from launching its missiles is the most important thing".

South Korea also urged the North to create conditions for dialogue by stopping additional nuclear and missile tests.

A North Korean photo showing a test missile launch. Credit: PA

The apparent breakthrough comes after North Korea threatened to fire missiles into the sea a few miles off Guam, in what would be seen as an overt provocation by the US.

The US Defense Secretary James Mattis had warned that America would take out any such missile seen to be heading for American soil and declared any such North Korean attack could mean war.

However, Mr Kim made clear that he has not taken the plans off the table.

Next week's planned military exercises in South Korea together with US forces could test the North's patience to breaking point and make it unclear if diplomacy will prevail.

The drills are intended as a show of US military strength to the North and provoke fury in the isolated one-party state. Mr Kim regularly responds by firing missiles into the sea off South Korea.

There is also speculation that the North wants to fire tests off Guam to test its missile technology as it develops an arsenal including nuclear warheads despite fierce sanctions aimed at curbing their programme.