Against the backdrop of recent incursions by Chinese troops into India, the two countries are working to conclude a new border defence agreement with an aim of signing it when Prime Minister Manmohan Singh travels to Beijing, possibly in October.
The Border Defence Cooperation Agreement (BDCA) proposes prevention of face-offs between the troops of the two countries along the over 4,000km Line of Actual Control (LAC).
The agreement was proposed by the Chinese side in January and is under negotiation following a spate of incursions by the troops of the People's Liberation Army into Indian territory.
The proposed pact may be signed during the visit of the prime minister to Beijing likely to take place in October, defence ministry sources told PTI here.
Sources said a team comprising officials of the defence and other ministries along with military officials is scheduled to visit China next month to discuss the proposal.
China had proposed freezing of infrastructure development along the border under the new pact but it was rejected by India.
Sources said the proposed pact would be "comprehensive" encompassing some of the protocols and agreements signed by the two countries in the past.
Other proposals made under the pact include non-tailing of troops if noticed during patrolling along the disputed Line of Actual Control and to not fire at each other under any condition.