New Delhi, Jan 17 (IANS): Indian and Pakistani forces Wednesday agreed to maintain peace on the LoC (LoC)in Jammu and Kashmir after days of bitter stand-off that had threatened their uneasy ties.

The two armies agreed not to violate the 2003 ceasefire on the LoC, an officer said Wednesday.

"The DGMOs (Director General of Military Operations) of India and Pakistan had a 10 minute talk in the morning and agreed not to violate the ceasefire and exercise maximum restraint," an Indian Army spokesperson told IANS.

The DGMOs agreed not to allow the situation along the LoC, which divides Kashmir between India and Pakistan, to escalate, he added.

Ties between the two neighbours were under strain ever since the Jan 6 killing of a Pakistani soldier allegedly in firing by Indian troops. Two days later, Pakistani soldiers brutally killed two Indian soldiers, including beheading one of them, on the LoC. India has voiced its protest over the killing and also summoned the Pakistani envoy in New Delhi.

On Tuesday, Prime Minister Manmohan Singh said that there can be "no business as usual" with Pakistan following the brutal killing of two Indian soldiers on Jan 8.

India also held back the Visa on Arrival regime for senior Pakistani citizens and Pakistani hockey players for the Indian Hockey League were asked to return on Tuesday.

Indian Army chief General Bikram Singh had Tuesday termed the killing of the Indian soldiers "an unpardonable act" and said his forces reserved the "right to retaliate".

Pakistani troops had violated the ceasefire on the LoC in Poonch district in Jammu and Kashmir Tuesday evening on two occasions - a day after their brigadier-level flag meeting Monday.