A Pakistani military official said a "strong protest" would be filed against Indian troops he said violated the Line of Control, The New York Times reported.
To ratchet down tensions between the armies, the Pakistani army's director general of military operations used established communications to confer with his Indian counterpart.
While a lawmaker in the area said troops from the two countries had been exchanging fire for the past two months in the border area of Poonch, tensions heated up after Pakistani forces were accused of killing five Indian soldiers in the region Tuesday.
Pakistan denied its troops were involved in the deaths but the Indian military refused to accept the claim.
"Our soldiers were killed well inside our territory, said S.N. Acharya, a spokesman for the Indian army in the Jammu region of Kashmir.
The Indian government later softened its initial accusation.
Indian Defense Minister A.K. Antony told parliament later in the day the soldiers had been killed by "approximately 20 heavily armed terrorists along with persons dressed in Pakistan Army uniforms."
In a further attempt to cool temperatures on both sides, Indian Prime Minister Manmohan Singh and Pakistani Prime Minister Nawaz Sharif are expected to meet during the U.N. General Assembly in New York in September.