The United States has praised the 'historic' meeting between Indian and Pakistani leaders during the SAARC summit and termed as 'act of statesmanship' the decision to begin composite dialogue next month.

"As President (Pervez) Musharraf said, I think it was a historic meeting that has taken place and opened new opportunities for achieving peace," Secretary of State Colin Powell told reporters in Washington on Tuesday.

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Powell termed the talks between India and Pakistan during the SAARC summit 'very successful' while appearing jointly with Tunisian Foreign Minister Habib Ben Yahia.

Meanwhile, a state department official said the Indo-Pakistan joint statement 'lays out a plan for future meetings between the leaders of the two countries'. Dialogue, he said, is a goal that the US has long favoured.

"This step forward towards peace between India and Pakistan, the official said, is important for regional stability and for the whole world," he said.

"We commend the acts of statesmanship which led India and Pakistan to this point and look forward to helping continue this process."

India and Pakistan issued the joint-statement in Islamabad on Tuesday pledging to resume composite dialogue in February, a day after Prime Minister Atal Bihari Vajpayee met with Pakistan President Pervez Musharraf on the sidelines of the summit.