NEW YORK, Sept. 15 (Xinhuanet) -- Indian Prime Minister Manmohan Singh and Pakistani President Pervez Musharraf agreed here Thursday to pursue all possible options for a peaceful negotiated settlement of their two countries' long-standing dispute over Kashmir.

    The two leaders, who are here attending the UN summit, releaseda short statement after a four-hour marathon meeting in a hotel where Singh is staying.

    "We agreed all possible options for a peaceful negotiated settlement in this regard should continue to be pursued in a sincere spirit and purposeful manner," said the statement, read tothe press by Musharraf.

    In the statement, the two leaders repeated their earlier pledgenot to allow terrorism to impede their two countries' peace process.

    The statement said the two leaders reviewed progress in bilateral relations since they last met in April in New Delhi and reaffirmed their commitment to the decisions taken at that meeting.

    They welcomed the progress made within the framework of the composite dialogue, including promotion of trade and economic relations, people to people contacts and confidence building measures.

    They also welcomed the recent release of prisoners on both sides and agreed to continue this process on a humanitarian basis,the statement said. Enditem