Dismissing speculation of any "deal" while resolving the situation, government sources said the two sides have only agreed to sit and talk about the peace and tranquillity along the Line of Actual Control (LAC) while restoring to the status quo in the sector.
Meanwhile, China stopped short of acknowledging that it's troops, which had intruded 19 kms into Indian territory, were going back to position prior to April 15 but said the "stand off incident" has been resolved through "fruitful consultations".
In Beijing, Chinese foreign ministry spokeswomen Hua Chunying said in a statement, "China and India have reached an agreement on resolving the incident in the western section of the border.
"The frontier forces of the two countries have terminated the standoff at the Tiannan River Valley area".
She added, "Since troops from the two sides began facing off in the western section of the China-India border last month, both sides have moved forward and adopted a constructive and cooperative attitude and calmed the tensions through border-related mechanisms, diplomatic channels and border defence meetings".
In New Delhi, Spokesperson in the Ministry of External Affairs said India and China have agreed to restore status quo along Line of Actual Control (LAC) in Ladakh as it existed prior to April 15.
Announcing this, he also said flag meetings have been held to work out modalities and to confirm the arrangements.
The spokesperson also officially announced the two-day visit of External Affairs Minister Salman Khurshid to China from Thursday.
Khurshid and his Chinese counterpart Wang Yi "will discuss bilateral, regional and global issues of concern to both sides. They will also discuss the proposed visit to India of Chinese Premier Li Keqiang," he said. .