Chinese Premier Wen Jiabao told Japanese Prime Minister Naoto Kan on Monday that the Diaoyu Islands are an inherent part of the Chinese territory.

"The Diaoyu Islands have been Chinese territory since ancient times," Wen stressed during the conversation held on the sidelines of the Asia-Europe Meeting (ASEM).

He pointed out that it serves the fundamental interests of both countries and peoples to protect and advance the China-Japan strategic relationship of mutual benefit.

The two sides agreed to step up people-to-people exchanges and intergovernmental communications and hold a high-level meeting at an appropriate time.

Wen arrived here for the ASEM after concluding his visit in Greece earlier in the day. He is also to attend the a China-EU summit in Brussels and then continue his four-nation visit which will also take him to Italy and Turkey.