Lee Hee-Beom, head of the 2018 Olympic organising committee, said they had long been preparing for the North's attendance at what he described as the "largest-ever winter festival in history".
"We're making preparations in case North Korea sends not only its athletes but a cheering squad and support staff as well," Lee said.
"The International Olympic Committee has also said several times that it would support North Korea's participation," Lee added.
North Korean leader Kim Jong-Un said in a new year speech that his country wished success for the Olympics, to be held from February 9-25, and would consider sending a delegation.
Kim also announced the reopening of a hotline with the South to discuss attending the Olympics, as a "significant first step" in improving ties.
Seoul and organisers have billed the Winter Games as a "peace Olympics" and have been keen for the North to take part.
Governor Choi Moon-Soon of Gangwon province, where the event is sited, has said the province is willing to send a cruise ship to the North to take its delegation to the South's port of Sokcho near the Olympic venues.
Choi said he had made the offer to a North Korean official, who reacted positively and promised to convey it to leader Kim.
"A cruise ship will be a convenient solution to the problems with security and lodging," the governor said.
When the North attended the 2002 Asian Games in the South's port city of Busan, its delegation arrived on a cruise ship and used it as a floating hotel during the event.
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