Serbia and Kosovo have agreed on an arrangement for free movement between their countries, the European Union's foreign policy chief Josep Borrell announced Saturday.

Serbia had agreed to abolish its entry-exit document for Kosovo ID holders, and Kosovo had agreed to not introduce them for Serbian ID holders, said Borrell, in a video statement posted online.

"Kosovo Serbs, as well as all other citizens, will be able to travel freely between Kosovo and Serbia using their ID cards," he added.

The agreement came after talks in Brussels earlier this week between Kosovo Prime Minister Albin Kurti and Serbian President Aleksandar Vucic, chaired by Borrell.

"I am very happy that we have found a European solution that facilitates travel between Kosovo and Serbia," said Borrell, thanking both leaders.

The Brussels meeting was called to try to defuse antagonism between the Balkan neighbours that had led to violent incidents in northern Kosovo in recent weeks.