"The purpose of the exercise, which is planned every year, is to develop mutual training, cooperation and interoperability between the Cyprus Turkish Peace Forces Command and the Turkish Republic of Northern Cyprus Security Forces Command," the ministry said, as quoted by the Daily Sabah newspaper.
Ground, air and naval forces will participate in military drills, according to the ministry.
The Turkish-Greek tensions escalated in August after Turkey's Oruc Reis research vessel began exploration drilling in the Greek-claimed waters in the Eastern Mediterranean.
Both countries accuse each other of signing illegal deals on maritime rights with third countries.
NATO has called on its members to engage in a dialogue and Turkey has voiced support for the alliance’s initiative, while Greece has said that negotiations would be possible only after Turkish vessels would leave what Athens calls its continental shelf.