National Security Advisor (NSA) Ajit Doval has held talks with Chinese Foreign Minister and State Councilor Wang Yi, sources said.
The talks took place over video call on Sunday.
According to sources, talks were held in a cordial and forward-looking manner.
The focus was on full and enduring restoration of peace and tranquillity and to work together to avoid such incidents in future, sources added.
The talks were held amid reports of mutual disengagement between India and China that has started at friction points along the Line of Actual Control in Eastern Ladakh sector.
"There is mutual disengagement between the two sides on all the four friction points in the Eastern Ladakh sector including Patrolling Point 14 (Galwan valley), PP-15, Hot Springs and Finger area," Indian Army sources said.
The mutual disengagement in Galwan area is about one to two kilometres and is varied at different locations, sources said.
The disengagement was agreed upon between both sides during the third Corps Commander-level meeting on July 1 at Chushul.
The disengagement is being seen as a result of intense diplomatic, military engagement and contacts in the past 48 hours.
These developments followed Prime Minister Narendra Modi's visit to Leh on July 3 where a decisive and firm message was sent out. The Prime Minister's strong message on expansionism by some countries has got global attention, sources said, adding that the message on national security has been appreciated.
Disengagement of Chinese troops is being monitored by the Indian side at all four friction points including the PP-14 (Galwan river valley), PP-15, Hot Springs and Finger area. The extent of withdrawal is varied at different locations, said sources.
( With inputs from ANI )