ITIL and Agile methods

Agile is about "individuals and interactions over processes and tools". Could agile methods an ITIL coexists?

It really depends on the way you decide to implement ITIL.

Whatever the agile method you are using (Scrum, eXtreme Programing, Unified Process, Evo...), you can't take and apply what you like and leave what you dislike.

With ITIL, before anything else, you *have to* do assessment and define what is making sense and what is not for your organization.
ITIL is not a method and will never be. Even if, in its 3rd version, ITIL is offering a much better cover on design and development, ITIL will remain a set of best practices.

ITIL and a non-waterfall method like Agile ones are not necessarily incompatible but you'll have to review your ITIL Release management and Change management quite deeply.

To keep it simple: ITILify agile but do not Agilify ITIL!