COLOMBO, August 3, 2008 (AFP) - The leaders of Afghanistan and Pakistan met Sunday at a South Asian summit in Sri Lanka and agreed to develop a 'common strategy to deal with extremism and terrorism,' the two sides said.

Afghan President Hamid Karzai and Pakistan Premier Yousuf Raza Gilani met over breakfast in Colombo Sunday and exchanged views on the 'common challenges facing the two countries in terms of dealing with terrorism and militancy.'

A joint statement after the talks said their foreign ministers would meet soon to craft a common strategy to deal with the problem.

'The President and Prime Minister decided that their respective Foreign Ministers will meet to prepare grounds for a framework for close and constructive engagement between (the) two countries to build confidence and develop a common strategy at the political, military and intelligence levels,' the statement said.

They will also collaborate with their coalition partners -- NATO and ISAF -- to prepare that strategy.

The meeting took place in a 'cordial atmosphere,' and 'the two sides agreed to coordinate their efforts to stop cross border terrorism,' the statement said.

Afghanistan has repeatedly accused Pakistan of clandestinely supporting Taliban rebels who are leading an insurgency to topple the US-backed government in Kabul.

Pakistan's premier Gilani had said Saturday that he would discuss last month's bombing of the Indian embassy in Kabul with Karzai amid allegations that Pakistan intelligence operatives were behind the attack.

The joint statement made no reference to the embassy bombing, but India's Foreign Secretary Shiv Shankar Menon said here Saturday that Gilani, in his talks with Indian Premier Manmohan Singh, agreed to 'look into' the charges.

Pakistan diplomats here noted that they could not interfere with investigations in Afghanistan unless Kabul authorities invited them to join a probe.