Top defence officials of India and Pakistan on Friday held talks on demilitarisation of the Siachen glacier with New Delhi expressing optimism over resolution of the problem dogging the two countries in the world's highest battlefield.

"I am sure we are heading for a resolution," Defence Secretary Shekhar Dutt, who headed a nine-member delegation to the two-day talks that opened today, told reporters on arrival.

Dutt held discussions with his Pakistani counterpart Kamran Rasool at the Pakistan Army headquarters in nearby Rawalpindi.

The parleys focused on the forward movement of the authentication of the present positions held by both sides as Indian side regarded it as a "first essential step," Indian officials said.

Pakistan side for its part talked about the withdrawal of troops as a "composite package", they said.

The talks were scheduled to conclude tomorrow after which both sides were expected to issue a joint statement.

Asked whether the two sides will consider any new proposal, Dutt said, "I am sure we will come across some of the new initiatives" and make progress.

The talks were taking place amid optimism generated by reports that Pakistan has conveyed its willingness to meet the main demand of India that Islamabad should authenticate the troops positions on the glacier before troop withdrawal.

India held the dominant positions and wants them to be acknowledged by Pakistan.

The Indian delegation also called on Pakistan Defence Minister Rao Sikender Iqbal who said that Islamabad has shown considerable flexibility on the Kashmir issue and India needed to reciprocate the same.

He said both the countries sincerely desired improvement in their relations in various fields and focused on settlement of all outstanding issues.

Iqbal said it was imperative to benefit from the conducive environment created by the leaderships of both the countries, a Pakistan defence statement said.