India and China have agreed to resolve a dispute over their shared border in the Ladakh region through "peaceful" diplomatic channels, according to the Indian foreign affairs ministry.

Senior officials of the two countries held a video conference and agreed that "the two sides should handle their differences through peaceful discussion" and should not allow them to become disputes, the foreign affairs ministry statement said.

While maintaining close communication through diplomatic and military channels, both sides are working to "properly resolve relevant issues", the spokesman said, according to the statement posted on China's foreign affairs ministry website

Both India and China agreed that peaceful, stable and balanced relations between India and China would be positive for stability in the current global situation, the Indian statement said.