Sinha, currently on a visit to South Africa, conveyed the message during a phone call with Powell from Pretoria on Thursday, official sources told the Press Trust of India (PTI) news agency.

"The process of consultations is continuing," Sinha told Powell, according to the sources.

Earlier this week, during a a visit to the United States, Indian Foreign Secretary Kanwal Sibal said there were still "grey areas" over the question.

The United States has asked India to send troops to be part of a stabilisation force in Iraq. The issue has caused a political storm in New Delhi with most opposition parties against the proposal.

India was against the war in Iraq, but is eager to be part of the reconstruction of the oil-rich country.

New Delhi is consulting Iraq's neighbours on their view of the proposal, but media reports have indicated most are against India sending troops to the region.

Sinha and Powell also discussed South Asia in the context of Pakistan President Pervez Musharraf's recent visit to the US, PTI said.

Powell told the foreign minister the United States and Pakistan have had "direct and forthright" discussions underlining the need for ending "cross-border terrorism".

India accuses Pakistan of arming and funding Muslim militants fighting Indian rule in Kashmir.

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