Last week China's Xinhua news agency had said Nepal has been negotiating with Pakistan and India to restart the SAARC summit. The Himalayan kingdom is the current chair of the regional grouping which comprises India, Pakistan, Sri Lanka, Bangladesh, Maldives, Bhutan and Afganistan.
Nepal PM K.P. Sharma Oli has reportedly requested PM Modi and his Pakistani counterpart Shahid Khaqan Abbasi to "remove misunderstanding".
The 19th SAARC summit held in Islamabad in 2016 was cancelled after India, Afghanistan and Bangladesh blamed Pakistan for not cooperating on stopping cross-border terrorism, a charge the Abbasi-led government denied.
Sources told ANI that "talks and terrorism can't go hand in hand".
India's relations with Pakistan has frayed over the years with increasing incidents of cross-border terror along the Line of Control(LoC) even as Pak authorities have insisted it has no hand in it.
The Trump administration has repeatedly said Pakistan is a "safe haven" for terrorists and the Taliban who have been using the porous Afghanistan-Pakistan border to carry out terrorist attack on Afghan soil. Pakistan has said it has crackdowned on the Taliban operating inside its territory including the Haqqani Network which the US believes operates inside Pakistan.