SEOUL, July 27 (Reuters) - South and North Korea have restored their once-severed hotline and the two countries' leaders have agreed to rebuild trust and improve ties,Seoul's presidential Blue House said on Tuesday.

North Korea's state media outlet, KCNA, also said all inter-Korean communication channels were reopened at 10 a.m. Tuesday (0100 GMT) in line with an agreement between the leaders.

South Korean President Moon Jae-in and North Korean leader Kim Jong Un have exchanged multiple letters since April and agreed to reconnect the hotline, the Blue House said.

North Korea cut the hotline in June 2020 as cross-border ties soured after a failed second summit in February 2019 between Kim and former U.S. President Donald Trump, which Moon had offered to mediate.

Moon has called for a recovery of the hotline and talks, pinning high hopes on U.S. President Joe Biden to restart negotiations aimed at dismantling North Korea's nuclear and missile programmes.