In a move hailed as "cricket diplomacy", he said the decision was taken at a meeting between President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani in Islamabad late Saturday.

"It was decided in response to the Indian Prime Minister's invitation that Prime Minister Yousuf Raza Gilani will visit India to witness the semi-final cricket match," Babar said in a statement Sunday.

India's prime minister Manmohan Singh on Friday invited Pakistan's president and prime minister to watch the semi-final which is to be played in Mohali in northern India on Wednesday.

Analysts said Singh's invitation wsa aimed at improving the environment for talks between the two countries on a number of troublesome issues.

"These kinds of visits do not suggest instant solution to the problems but break the stalemate, help improve the environment which facilitate talks," leading analyst Hasan Askari told AFP.

The development comes as relations between the neighbours remain tense following the attack by Pakistan-based Islamist militants on Mumbai in 2008 that left 166 people dead.

However, the two countries' top officials are due to hold talks on counter-terrorism in Delhi this week.

"The diplomats will now be more relaxed in their dialogue but as the issues are complex, their solution will take time," Askari said.

"This development also shows that India is now really interested in resuming dialogue on all contentious issues."