Pakistani military on Tuesday rejected Indian claim that Pakistani troops sneaked into Indian- controlled Kashmir and ambushed an army patrol party, killing two Indian soldiers.

"Pakistani military denied Indian allegation of unprovoked firing," a Pakistani military official said.

Indian officials earlier said the attack took place along the Line of Control (LoC), a de facto border between India and Pakistan in the disputed Kashmir region, when Pakistanis came about 100 metres into Indian-controlled Kashmir and assaulted the patrol party.

Pakistani army dismissed the charge as propaganda.

"It looks like Indian propaganda to divert attention from Sunday raid on a Pakistani post by Indian troops in which a Pakistani soldier was killed," the Pakistani military official said.

Pakistan said that one soldier was killed and another injured by the Indian forces on the Pakistan side of the LoC on Sunday.

The Pakistani army said that Indian troops had crossed the LoC in Haji Pir Sector in Bagh district and raided a Pakistani checkpost.

Lull in fighting has been sporadically broken by border forces since Pakistan and India declared ceasefire along the LoC in November 2003.

Pakistan and India have fought three wars, two over Kashmir, since their independence from the British rule in 1947.

Relations between the nuclear-armed rivals, which deteriorated after the 2008 Mumbai attacks, have improved over the past few years.