"Kashmir a bilateral issue and will have to be solved bilaterally," MEA sources told an eminent news agency.
Furthermore, the source added about the policy of Modi administration stating the "talks and terror cannot go together."
"For any conversation to take place, Pakistan will have to shun terror first," said the MEA source.
During an interaction with press on Tuesday prior to the meeting with Pakistan Prime Minister Imran Khan, United States President Donald Trump repeated his mediation offer once again.
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"We will discuss the situation in Kashmir. We can meditate on the issue. We are working with Pakistan on some borders and we were talking about Kashmir in relation to what is going on between Pakistan and India. If we can help, we certainly will be helping. We have been watching that and following it very very closely," he said.
The meeting between the two leaders was the third one-on-one in less than one year. The meeting was attended by delegations from both sides as regional security matters, Afghan peace process, US-Iran conflict and the situation in Jammu and Kashmir were discussed.
Prime Minister Imran Khan also raised the issue of Kashmir, highlighting the tense situation in the state of Jammu and Kashmir since August 5, reiterating his demand to Donald Trump and the international community to intervene.
"Of course India, it is a big issue for us and Pakistan as a sovereign nation. And we always hope that the US would play its part in solving it. Because no other country can," said Imran Khan.
Pakistan's vitality for the US has increased with the rise in tensions between Washington and Tehran. Pakistan becomes a very important strategic partner and that is not lost on the military establishment in Rawalpindi.
But, the remarks made by US President just a month ahead of his India visit, has not gone down well with New Delhi. Trump has used various forms of the word "mediation", "arbitration", "intervention" at least seven times in the past.
Despite the fact that the State Department has repeatedly been mentioning that Kashmir is a bilateral issue to be resolved between India and Pakistan, Trump has continued to mention the troublesome issue much to the consternation of New Delhi.