Senior Pakistani and Indian military officials Wednesday talked on phone and discussed the current escalation of tension along the Line of Control (LoC), which divides the two countries in the disputed Kashmir region, the military said.

The contact was established for the first time after Pakistan accused Indian troops of intruding into its part of Kashmir and killing one of its soldiers on Sunday.

On Tuesday, Indian authorities also came up with a claim that Pakistani forces entered its part of Kashmir and killed two Indian soldiers. "Today, Pakistan military DGMO (Director General Military Operations) talked to his Indian counterpart in India on hotline," a Pakistani military official said. "Pakistan rejected Indian army allegations of cross LoC firing by Pakistani troops and killing any Indian soldier,"the official said. "Indian authorities were informed that Pakistan has carried out ground verification and checked and found nothing of this sort happened as being alleged by India,"he said.

The Pakistani military official described the Indian claim as " mere propaganda by Indian army".

The official mentioned that Indian troops raided a Pakistani post on Sunday morning in which a Pakistan soldier was killed." The martyred soldier was buried in his native village in Chakwal ( in Punjab province) on Tuesday,"he said. "Indians are doing this propaganda and trying to divert attention of world from that raid and alleging Pakistan for cross border violation,"the Pakistani official said.

The Indian officials stated earlier that Pakistani troops sneaked into Indian-controlled Kashmir and ambushed an army patrol party, killing two Indian soldiers.

They said the attack took place along the LoC when Pakistanis came about 100 meters into Indian-administered Kashmir and assaulted the patrol party.

Pakistan and India declared ceasefire along the LoC in November 2003 and guns had been relatively silent since then.

After years of a lull, the abrupt cross-border tension between the nuclear rivals has raised serious concerns across the world and calls for de-escalation of tension are pouring in from important capitals.