Talks on the Mullaperiyar dam issue failed to break the deadlock with both the states sticking to their stated positions as Tamil Nadu shot down Kerala's [Images] offer of building a new dam.

The irrigation ministers of both the states will meet in New Delhi [Images] within two weeks in the presence of Union Water Resources Minister Saifuddin Soz to discuss the issue further.

"The talks were cordial and the ministers of both states will sit together to narrow down the differences," Tamil Nadu PWD minister Durai Muragan said after the talks between Kerala Chief Minister V S Achuthanandan and his Tamil Nadu counterpart M Karunanidhi.

During the 90-minute long meeting, Kerala suggested construction of a new dam near the existing one as a solution but the Tamil Nadu side not relenting to the proposal saying that it was not feasible.