"The Indian army will hand over Pakistani soldier Salim Ali Shah and similarly Pakistan will repatriate two Indian army soldiers, Jagsir Singh and Mohammed Arif," Indian army spokesman Naresh Vij said here Sunday.

The exchange will take place at Wagah, a town halfway between Lahore and the Indian city of Amritsar that is the only legal crossing between the rival neighbours.

Pakistan and India began a peace process last year and have moved to repatriate each other's nationals, particularly fishermen and other civilians who were jailed for straying past the border.

Vij said the soldiers to be handed over Monday were captured during the 1999 conflict in Kargil, where 1,000 people died over four months as India fought Pakistan-based infiltrators who crossed the icy frontier.

Kashmir is divided and disputed between India and Pakistan and has been the trigger for two of the countries' three wars.

Vij said the Indian army planned a welcome ceremony for the returning soldiers Monday but that the duo would have to wait a week to be reunited with their families as they undergo medical tests and other formalities.

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