The move follows a statement by US President Donald Trump, who had said in a press conference after the summit with North Korean leader Kim Jong-un on June 12 that it was inappropriate to hold "war games" in the region in order to negotiate a deal.
"Major military exercises have been suspended indefinitely on the Korean Peninsula," a senior US official told AFP news agency.
Earlier in the day, South Korean President Moon Jae-in stated, that a change in military pressure on North Korea would be possible only if Pyongyang was to "carry out denuclearization steps sincerely."
On June 12 Trump and Kim met on the Singaporean island of Sentosa. Following a one-on-one meeting and subsequent negotiations in an expanded format, the leaders signed a document showing their commitment to establish new bilateral relations and build a lasting peace on the Korean Peninsula.
After the summit the US President stated, that military exercises in the region were "provocative" and might be suspended.
"The war games are very expensive, we pay for the majority of them," Trump told a news conference.