China dismissed as "speculation" on Monday complaints in New Delhi that its troops had crossed into Indian territory and set up a camp in a remote disputed area of the Himalayas.

The Indian government claimed at the weekend that soldiers from the People's Liberation Army (PLA) entered the northeast of Ladakh and erected a camp on the night of April 15.

"China's frontier troops have been abiding by the agreement between the two countries and abide by the actual line of control between the two countries," foreign ministry spokeswoman Hua Chunying told a regular news briefing.

Asked about apparent worries in New Delhi, she said it was "only the speculation of some Indian people."

"Our troops are patrolling on the Chinese side of the actual line of control and have never trespassed (across) the line," she added.

Indian Foreign Minister Salman Khurshid told reporters that local military commanders from the two sides were meeting to resolve the alleged intrusion. "We are still in touch and flag meetings are going on," Khurshid said in New Delhi.

"There is more information to come. We will factor all that and then take a final view," he said, without elaborating.

India's defense minister also said that efforts were underway to resolve the situation.

"We are taking every action to protect our interest. We will take every step to protect our interest," A.K. Antony said.

"We believe the current China-India relations have been in a fine shape, there is good communication and coordination on the boundary issue. The border areas are in a peaceful condition," Hua added at Monday's news briefing.

A government source, talking to AFP about the alleged incursion at the weekend, said New Delhi was confident it could settle the high-altitude territorial dispute "peacefully" through diplomatic channels.

AFP