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It will be the first high-level meeting between the two sides after the border row escalated in eastern Ladakh in early May.
The incident occurred on March 8 when a platoon of at least 11 PLA men led by a colonel-rank officer crossed over the imaginary LAC.
The Indian Army has been slow to react. Indian troops have deployed in the vicinity of PLA incursions, but there are no attempts to outflank Chinese positions.
The decisions were mentioned in a joint statement issued by the two armies late Tuesday, a day after the sixth round of Sino-India Corps commander-level talks that lasted for 14-hours.
A joint statement released on Thursday said both sides exchanged views in an 'open and constructive' manner to resolve the 'relevant issues' and that it was agreed to maintain 'security and stability' on the ground in the region.
The disengagement of troops of the Indian Army and China's People's Liberation Army from the Line of Actual Control was reached after sustained negotiations at the military and diplomatic level, said the ministry of external affairs last week.
India and China have implemented a pact on patrolling in Depsang and Demchok along the Line of Actual Control (LAC) in eastern Ladakh, as per agreed modalities and timelines. The agreement was reached on October 21 and includes provisions for disengagement and patrolling in the last two friction points in the region. The pact has been effected and implemented as agreed, with both sides resuming patrolling activities and grazing, where applicable, as per longstanding practice before the friction began. The terms of the disengagement agreements reached prior to the latest pact continue to hold in relevant areas in eastern Ladakh. The agreement applies mutually to both sides and is without prejudice to India's positions on the LAC or boundary lines. India and China are each carrying out one round of patrolling in Depsang and Demchok, but they have maintained their deployment of troops along the LAC. The focus now is on de-escalation of the overall situation. The agreement was endorsed by Prime Minister Narendra Modi and Chinese President Xi Jinping in a meeting in Kazan, Russia, signaling attempts to normalize ties.
The Indian and Chinese troops are locked in an over three-year confrontation in certain friction points in eastern Ladakh even as the two sides completed disengagement from several areas following extensive diplomatic and military talks.
India is looking forward to a "constructive" dialogue with China to resolve issues in remaining friction points in eastern Ladakh, sources in the security establishment said on Monday ahead of the 14th round of military talks between the two sides on the 20-month row.
According to information, the Chinese side conveyed to the Indian mission its keenness to have a meeting between the two defence ministers.
The Indian side also told the Chinese delegation that the talks on disengagement should include Depsang as well as all face-off sites, insisting that it should be a simultaneous process and not a selective one.
India has been maintaining that its ties with China cannot be normal unless there is peace in the border areas.
China and India have made 'positive progress' to resolve the border standoff, with both sides maintaining close communication through diplomatic and military channels, a senior foreign ministry official said in Beijing on Friday.
India and China are likely to hold the 16th round of high-level military talks on July 17 to resolve the issues in remaining friction points along the Line of Actual Control (LAC) in eastern Ladakh, people familiar with the development said on Wednesday.
Sources said India will not lower its guard and will maintain the current state of very high-level of combat readiness in eastern Ladakh till there are visible changes in the ground situation.
This is Gen Pande's first visit to the sector after taking over as the chief of the Indian Army on April 30.
In a written reply to a question in Lok Sabha, Minister of State for External Affairs V Muraleedharan gave a brief account of the four-month-long standoff and said the Chinese side attempted to transgress the Line of Actual in several areas of the western sector since mid-May.
"The two former defence ministers had some clarifications and doubts on the situation which were clarified by the CDS and the Army chief," sources said.
India and China failed to make any breakthrough, but agreed to maintain dialogue to arrive at a mutually acceptable resolution at the earliest.
Rezang La is the site of an epic battle where Indian troops bravely fought the Chinese soldiers in 1962.
It was the second time in the last three days that India asserted that the relationship with China depends on the resolution of the pending issues in eastern Ladakh.
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The humanitarian gesture by the army came when it is dealing with an aggressive behaviour by the Chinese troops in eastern Ladakh.
India recently outflanked China by taking control of strategic height near Pangong lake's southern bank.
Sources said the Indian side has prepared very well for responding to the Chinese reaction in view of the action by own troops including a Special Operations unit and Sikh Light Infantry troops there.
If China is accommodating regarding Depsang and Demchok, a resolution of the Sino-India territorial dispute in Eastern Ladakh could be possible.
Jaishankar also said that there is a need to take the disengagement process forward.
Prime Minister Narendra Modi's bilateral meetings on the sidelines of the BRICS summit in Johannesburg are being finalised, Foreign Secretary Vinay Kwatra said on Monday but did not give a direct reply on the possibility of a meeting between Modi and Chinese President Xi Jinping.
India and China agreed during their military talks on Sunday to stay in close touch and work out a mutually acceptable solution to the "remaining issues" in eastern Ladakh at the earliest, but there was no indication of clear forward movement in ending their three-year-long border standoff.
China said that "sound and stable ties" serve the common interests of China and India.
India and Chinese troops on Saturday exchanged sweets and greetings at 10 border posts along the Line of Actual Control (LAC) including in eastern Ladakh to mark the New Year, officials said.
On development of infrastructure by China in border areas, the Army chief said it is going on unabated.
Jaishankar said full restoration and maintenance of peace and tranquillity in border areas was essential for the development of the bilateral ties.
The MEA spokesperson further said the actions and behaviour of the Chinese side since earlier this year along the LAC have been in "clear violation" of the bilateral agreements and protocols concluded between the two countries to ensure peace and tranquility on the border.
There was no official word on the outcome of the talks.
Jaishankar said the last few years have been a "period of serious challenge", both for the relationship and for the prospects of Asia, noting that continuation of the current impasse will not benefit either India or China.
As tension escalated at the Line of Actual Control (LAC), the sources said around 50-60 soldiers of Chinese People's Liberation Army (PLA) approached the Indian post in the southern bank of Pangon lake area at around 6 pm but the Indian Army personnel posted there strongly confronted them, forcing their retreat.
Vice Chief of Army Staff Lieutenant General C P Mohanty on Thursday carried out a comprehensive review of India's military preparedness in eastern Ladakh on the first day of his three-day visit to the region where Indian and Chinese troops have been locked in a bitter standoff for over a year.
Chinese Foreign Ministry spokesman Zhao Lijian expressed this hope hours after India and China accused each other of firing in the air near the Pangong lake at the Line of Actual Control(LAC) in eastern Ladakh on Monday.
