Negotiations have begun between India and China to resolve the impasse over allowing more flights between the two countries.

The impasse came about after New Delhi withheld permission to Great Wall of China to fly into India on security grounds. Beijing then retaliated by not clearing the flights of Jet Airways to Shanghai and Indian Airlines to Guangzhou.

The Inter Ministerial Group, including officials of the Ministries of Civil Aviation, external affairs, finance and home ministry, met in Beijing to work out some options.

"All options will be weighed and we will hold further consultations among ourselves before finalising our position," a senior official said.

The matter will be resolved within the month said officials.

The two sides had previously allowed unlimited rights to each other's cargo airlines with Fifth Freedom rights to operate to points beyond the two countries.