Colombia paid mercenaries who had captured Granda

They said they would review the incident and work together in the future to fight terrorism and drug-trafficking.

Venezuela had accused Colombia of violating its sovereignty by paying bounty-hunters to seize the commander, Rodrigo Granda, in its territory.

It cut off commercial links and suspended a $200m gas pipeline project.

Venezuela also withdrew its ambassador from Bogota - a gesture not reciprocated by Colombia.

Colombia initially denied claims it had abducted Commander Granda, a member of the left-wing Farc, from foreign soil but later admitted paying the bounty hunters who had secured his capture.

Venezuela demanded an apology from Colombia over the capture.

Summit

A statement from the Colombian presidential palace did not include an apology as such but a guarantee that the incident which saw the kidnapping of Mr Granda from the streets of Caracas would not be repeated.

Presidents Alvaro Uribe and Hugo Chavez will meet on 3 February in an attempt to improve relations, it said.

"The Colombian government issues this communique, which has been agreed with the government of the sister Republic of Venezuela," a statement from the Colombian president's office said.

"Based on this agreement, the incident is over."

Venezuela welcomed Colombia's statement and said an end to the crisis was now possible.