North Korea has moved two missiles that last month sparked worldwide fears over a possible test firing, according to the US.
An anonymous US Defence official told the AFP news agency that the Musudan missiles are no longer considered an imminent threat.
South Korea has not confirmed they have been moved from their launch site but says it is closely "tracking" all activity in the area.
The easing of tensions comes ahead of a US-South Korea summit in Washington, thought to be intended as a strong signal of unity to the North Korean regime.
President Obama and new South Korean leader Park Geun-Hye, the country's first female leader, are scheduled to hold a joint press conference on Tuesday.
The situation on the Korean peninsula has been at boiling point since December when North Korea test-launched a long-range rocket. In February, it conducted its third nuclear test, which drew fresh UN sanctions.
North Korea's Kim Jong-Un then ramped up his rhetoric in April, warning foreigners to leave his country to avoid getting caught up in "thermonuclear war" and causing neighbouring countries such as Japan to deploy defensive missiles.
The US also sent Stealth bombers to the region in a show of solidarity with South Korea.
South Korean leader Park Geun-Hye is visiting the US this weekDespite the tensions, many analysts view the North's actions as a ruse intended to secure a loosening of sanctions and make Kim Jong-Un appear strong in the eyes of his people.
But the threat in the region is still being taken seriously amid concern that any misunderstanding could have serious consequences.
Pyongyang's rhetoric continued again this week as it issued a fresh warning over a smaller, joint anti-submarine exercise by the US and South Korea.
North Korean troops near the disputed Yellow Sea border have been ordered to strike back if "even a single shell drops" in their territorial waters.
US officials admit the situation is far from resolved.
"It's premature to make a judgement about whether the North Korean provocation cycle is going up, down or zigzagging," said Danny Russel, senior director for East Asia on Obama's National Security Council.
In an interview with US broadcaster CBS ahead of her summit with Obama, President Park said any attack by the North would be met with a harsh military response.
"Yes, we will make them pay," she said, adding that Seoul would no longer engage in a "vicious cycle" of automatically meeting the North's provocations and threats with negotiations and assistance.
"It is time for us to put an end to that cycle," said Park.
Despite the President's comments, experts believe talks with the North are still the most likely way to defuse the crisis.
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