South Korea and the United States have reportedly agreed to scale down a major combined exercise next month.

According to a government source in Seoul on Sunday, the two sides have decided to conduct the joint exercise, rather than cancelling it, through follow-up consultations held after last week's phone conversations between the defense chiefs of the two nations.

The source said that the planned exercise, that will likely take place after mid-August, will focus on verifying Seoul's preparations to take back wartime operational control (OPCON) from the United States.

The source added that the allies are working to come up with an optimal way to stage the exercise in consideration of various factors amid the COVID-19 outbreak.

The combined drill is expected to be based on the computer-simulated command post exercise, not outdoor drills.