Pakistani President Pervez Musharraf and Indian Prime Minister Manmohan Singh "may meet" this month in Havana during the Non-Aligned Movement summit, foreign ministry spokeswoman Tasnim Aslam told reporters at a weekly briefing.

"(The) President is going to attend the NAM summit in Havana and we believe that (the) Indian prime minister will also be there," she said.

"Since both leaders will be there, it has become possible that they may meet."

Singh last week told reporters in in the eastern city of Bhubaneshwar that he was prepared to meet Pakistan's president, however, he said the peace talks "cannot go forward if Pakistan does not deal with terrorism firmly".

India and Pakistan launched their latest peace talks, aimed at resolving their decades-old dispute, in January 2004, two years after retreating from the brink of their fourth war.

The rivals had completed three rounds of talks when New Delhi abruptly suspended the dialogue following a series of bomb attacks on commuter trains in its financial capital, Mumbai, on July 11.

India pointed the finger at Islamabad and a Pakistan-backed Islamic rebel group for the blasts which killed 183 people and wounded more than 800.

Pakistan's foreign ministry rejected again the allegations that it was harbouring terrorists that carry out attacks in India.

"These are baseless allegations. There is absolutely no evidence that we know of about India can provide to Pakistan linking any elements in Pakistan to the terrorist attack in Mumbai," Aslam said.

Musharraf last met Singh in April 2005 during his first visit to India.

India accuses Pakistan of training, arming and funding an Islamic insurgency in Kashmir. Pakistan denies the charge.

The scenic Himalayan region of Kashmir -- divided between India and Pakistan but claimed in its entirety by both -- has been the trigger for two of their three wars since 1947.

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