This explosive revelation has been made by ex-Pakistani foreign minister Khursheed Mehmood Kasuri in his new book "Neither a Hawk nor a Dove" unveiled in Islamabad on Sunday.
The book referred the talk process took place between neighbours India and Pakistan during the Musharraf regime for solving the Kashmir issue.
The diplomatic efforts from both sides had come close to solving the much discussed Kashmir issue.
"During Musharraf's Agra visit, a four-point agenda was agreed upon which included withdrawal of troops along the LoC, greater autonomy to the Kashmir government and a method for joint Pakistan-India observation," Kasuri was quoted as saying by the online edition of Pakistan's leading English daily Express Tribune.
Other points that both sides agreed upon included free movement of Kashmiris for at least 15 years, turning the LoC into a neutral zone and permitting them to decide what to do next, he said.
Sudheendra Kulkarni from India among other dignitaries who attended the book launch event.