New Delhi: In a major confidence building measure, India and China on Tuesday signed an agreement for setting up a mechanism to avert any untoward incident on border.

The agreement was signed after two-days of talks between Special Representatives(SR) -- National Security Advisor Shivshankar Menon and Chinese State Councillor Dai Bingguo -- during which they noted the importance of regular high-level exchanges and strengthening cooperation across different areas.

The Working Mechanism for Consultation and Coordination on India-China Border Affairs, to be headed by a joint secretary level officer, will undertake mutually agreed tasks but will not discuss resolution of the boundary question or affect the SR process.

"The mechanism will ensure that anything happening on the border is immediately referred to the concerned higher level authorities so that we maintain the relative peace and tranquility along the border," Foreign Secretary Ranjan Mathai told reporters.

Since the Sino-India border is not delineated, incidents of transgressions have been irritants in the bilateral ties.

Dai called on Singh who said that good cooperation between the two countries will bring about great changes to the world.

Singh said that India was ready to work with China to push forward bilateral cooperation in all the fields.