India and Pakistan on Tuesday indicated that a solution to the Baglihar river project dispute is in sight.

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Water Resources Secretary V K Duggal told reporters after a lengthy meeting with his Pakistani counterpart that their talks were "cordial and very friendly with utmost mutual understanding and cooperation."

The two sides will now report the "factual position" to their respective governments, he said.

The leader of the Pakistani delegation, Water and Power Secretary Ashfaque Mehmood said: "We hope we have covered sufficient ground and now we are going to have a win-win situation [for both sides]."

Duggal said though he could not reveal the details of the negotiations, "there have been some agreements on how the issues can be resolved."