The decision by the government and the rebel Liberation Tigers of Tamil Eelam (LTTE) was discussed at a meeting of the island's main foreign aid donors here, top Norwegian peace broker Erik Solheim told AFP.
"The government of Sri Lanka said it was ready for talks without any pre-conditions and the LTTE has said the same," Solheim said.
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"We will have the talks in the first week of October in Oslo."
The country's main donors, the European Union, United States, Japan and Norway welcomed in a joint statement "the expression of willingness of the Government of Sri Lanka and the LTTE to come to talks unconditionally".
"The parties should cease all violence immediately," the four co-chairs of the Tokyo Conference on Reconstruction and Development of Sri Lanka added.
The announcement came as Sri Lanka's President Mahinda Rajapakse told visiting Commonwealth finance ministers in Colombo that he wanted the Tigers to enter peace negotiations as soon as possible.
"I reiterate my call to the LTTE