Mirwaiz Omar Farooq of the All Parties Hurriyat Conference, an umbrella group of some two dozen parties, said a solution could emerge from outside a series of decades-old United Nations resolutions calling for a plebiscite.

Until now the separatists have always backed the resolutions, which were adopted from 1948 onwards, as the only acceptable path to end the bitter dispute over the scenic territory.

"It looks as if we are moving towards a negotiated settlement. We have to move from our traditional positions," Farooq told AFP after a group of moderate separatists met Musharraf late Tuesday.

The Hurriyat leaders are making an unprecedented visit to the Pakistani side of the border as part of a peace process launched between Pakistan and India last year.

"We support the step by step strategy and we understand that a solution to the problem cannot be found in one go. We are very hopeful after meeting with Musharraf."