The agreement was reached during a meeting of Indian and Nepalese officials at the SSB Group centre here, Balrampur District Magistrate Rakesh Kumar Misra said.
Six Nepalese officials and officials from five districts of Uttar Pradesh took part in the meeting, he said.
India and Nepal will soon start reconstructing the damaged pillars and clear the "No Man's Land" of encroachers, said Misra, the nodal officer for the Indian side.
They include identifying the damaged pillars, reconstructing them and clearing the No Man's Land.
Misra said the Sashastra Seema Bal (SSB), the Public Works Department, Revenue Department, and the Nepali Police will contribute to the process.
He hoped the resolution of differences will help in strengthening ties between the people of the two countries.
Hariprasad Mailani, the nodal officer of the Nepalese side, said no one will be allowed to misbehave with the Indian people and jawans in Nepal.
Uttar Pradesh shares a 599.3-km open border with Nepal touching seven districts - Pilibhit, Lakhimpur Kheri, Bahraich, Sravasti, Balrampur, Sidhharthnagar and Maharajganj.
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