China and India have agreed to withdraw its troops to end a standoff that has lasted for two weeks in the disputed border, an Indian official said.

India's Foreign Minister Sushma Swaraj said both countries had agreed to pull back after talks with Chinese Foreign Minister Wang Yi at the sidelines of the United Nations General Assembly held in New York earlier this week.

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Swaraj said both sides have pledged to pull back troops from the Chumar territory by Sept. 30 and return to the original positions held back in Sept. 1.

Swaraj said the accord was a big accomplishment, adding that Indian troops are expected to be fully withdrawn by Tuesday.

Last week, Chinese President Xi Jinping visited Indian counterpart Prime Minister Narendra Modi for a highly-anticipated three-day summit aimed at improving bilateral and trade ties. But the meet was overshadowed by the border standoff which raised concerns from both sides, the AFP relayed.

Modi called for a negotiated solution and said the true potential of China-India relations would be best identified through a peaceful border relationship.

Xi responded and communicated his intent to work with India to preserve peace.

Indian officials said the standoff was triggered by attempts from both sides to construct in the contested territory.

Earlier this month, Indian border troops built a small outpost in the Himalayan plateau to observe Chinese soldiers stationed at the opposite side.

According to Reuters, the move had rankled Chinese troops that it constructed a temporary road in India's territory and demanded the outpost be dismantled. India had rebuffed the demands and destroyed part of the road which resulted in the increased troop presence in the area.

Former Indian ambassador and Ladakh resident P. Stobdan said the accord suggests a shift in Indian approach to the border dispute.

"The hut has become the bone of contention. The Chinese have drawn a red line. They want it demolished before they will withdraw," he added.

TagsSino-India border dispute, Ladakh, border standoff, Sushma Swaraj, Indian Army