The route from Munabao in India to the southern Pakistani town of Khokhrapar was suspended in September 1965 when the two countries went to war over the disputed Himalayan territory of Kashmir.

"Both sides agreed to an early resumption of the rail link between Khokhrapar and Munabao," Indian and Pakistani railway officials said in a joint statement after two days of talks in Islamabad.

The railroad, which could take up to two years to resume service, is part of a slow-moving peace process between the nuclear-armed neighbours, who have fought three wars since independence from Britain in 1947.

In January a train service resumed between Pakistan's second largest city Lahore and the Indian border town of Atari following a two-year break, also caused by tensions over Kashmir.

The second rail link, just 10km long, will have no commercial value but is mainly aimed at reuniting divided families in Pakistan and India and improving bilateral relations, officials said.

The two sides agreed to take steps "to undertake specific activities including laying of railway track and other related infrastructure to operationalise the rail link," the statement said.

They would hold a further meeting at a mutually agreed date, it said, adding the talks were "cordial and constructive".

The negotiations were led by Pakistan Railway Board secretary Zaeem Chaudhry and Indian railway ministry official L.R. Thapar.

Chaudhry said Thursday that the railway link offered no financial benefits but was "just a good gesture... a sort of a gift from one country to another to bring the divided families together."

Pakistani officials said India had proposed reopening the route by October next year, but the timeframe is regarded in some quarters as unlikely.