The firing between Indian and Pakistani troops across the Line of Control stopped early on Tuesday after continuing for 16 hours and the body of a soldier from the Rajput Regiment, who was killed in the incident, was recovered.
The body of sepoy Mahesh, who was hit by a Pakistani bullet, was found from a ditch, defence sources said.
There were reports that four Pakistanis were killed in the Indian retaliatory fire.
With the firing which began at 3.30 pm yesterday stopping, Indian and Pakistani troops have agreed to hold a flag meeting, the sources said.
The DGMOs of the two countries spoke on Monday on phone in the wake of the firing incident which violated the November 2003 ceasefire along the Line of Control.
They said the Pakistani troops crossed the LoC on Monday afternoon, came to the barbed wire fence and asked the Indian troops to vacate an observation post at Khayan area of Nowgam sector of Jammu and Kashmir.
This led to a war of words between the two sides and a Pakistani trooper fired at the Indian observation post indiscriminately leading to the death of the Indian soldier who belonged to 22 Rajput Regiment.