Prime Minister Atal Bihari Vajpayee on Monday voiced confidence that the visit of Israeli Prime Minister Ariel Sharon to India would pave the way for further consolidating bilateral ties and said there was no dilution of the country's stand on the Palestinian issue.

"Our relations will be further strengthened," he told reporters when asked how he viewed the four-day landmark visit of Sharon commencing Monday.

Asked whether there was any dilution by India of the Palestinian cause, the prime minister said, "We have taken a principled stand on it."

The Israeli leader, who arrives with a high-power delegation, will have wide-ranging discussions with Vajpayee on Tuesday on a whole range of issues, including developments in the West Asia peace process and the US-backed 'roadmap' for peace, the Iraq situation besides the entire gamut of bilateral matters.

The two sides are negotiating a joint statement that is expected to reflect concerns over terrorism, perceptions on West Asia as also focus on bilateral economic cooperation.