The two countries severed diplomatic ties in 1990.
Nicaragua is the second country to have restored official relations with Pyongyang this year. In April North Korea resumed relations with Burma (also known as Myanmar) which had been suspended since 1983 after an explosion in Yangon, the capital of Burma, during a visit by South Korean ruler Chun Doo-Hwan. The explosion killed 21 South Korean ministers, but the president was not injured.
The attack was blamed on North Korean militants, but Pyongyang denied the accusations, saying the South Korean leader himself had orchestrated the incident.