Addressing media persons in Islamabad before emplaning for New Delhi, Holbrooke said: "Washington cannot negotiate between the two countries, they should normalise mutual ties."
Terming the Nov 208 Mumbai terror attack as 'strategic terrorism', he said the strikes were an attempt to destabilize both countries.
"The terrorists tried to ignite a war between Pakistan and India but failed," The Daily Times quoted Holbrooke, as saying.
Holbrooke noted that Pakistan had the majority of its military stationed along the Indian border which it started moving towards the Afghan side to prevent militants from spilling over, but the process has been hindered following 26/11.
He said that the Pakistan's Army is a traditional force and lacks the ability to fight militants.
Hoolbrooke said the US is ready to help train the Pakistan armed forces to make them an effective force against extremists.