The Indian government is likely to allow cricket ties with Pakistan to resume within the next week, according to an Indian cricket board member.
But the India's sports minister Vikram Verma has played down the claims, warning that the "Prime Minister is yet to give his approval".
India and Pakistan played each other during the World Cup in March, and previously in the Asia Cup in Bangladesh in June 2000.
But since a Pakistan tour of India in 1999, India's government has refused to let it's team play their neighbours outside of a world or major regional event.
The Board of Control for Cricket in India (BCCI) this week formally applied to the government for permission to resume tours.
The Associated Press quoted an anonymous BCCI member as saying Prime Minister Atal Bihari Vajpayee has given his approval.
Vajpayee also told Parliament last Friday that he was leaving the issue up to those who handle sports, suggesting he had no objection.
Pakistan are due to tour India next February under the International Cricket Council's 10-year Test programme.
But the Pakistan Cricket Board (PCB) is insisting that India show good faith by first playing in Pakistan.
"We are planning to host India in February 2004 and we have approached the International Cricket Council in this regard," said PCB chief executive Lt. General Tauqir Zia this week.
Fans from both countries are keen to see the rivalry resumed.
A home series against India would also be a welcome financial boost for the PCB, which has suffered major losses in recent years following the cancellation of a number of series, and the switching of others to neutral countries.
The two governments have been at loggerheads over India's accusations that Pakistan has been supporting militant groups in Jammu and Kashmir.
But full diplomatic ties and transport links were restored last week and India are planning to appoint an ambassador to Pakistan in the near future.