Even as the controversy over US President Donald Trump's comments on mediating in the Kashmir dispute raged through the day, former Jammu and Kashmir Chief Minister Mehbooba Mufti on Tuesday batted for the idea and said both India and Pakistan should seize the opportunity to forge peace.

Taking to Twitter, Mufti said, "Despite GOI refuting idea of third party mediation on J&K, the disclosure made by Trump marks a huge policy shift. Even though USA doesn't hold a great record in resolving protracted conflicts, hope both countries seize this opportunity to forge peace through dialogue."

However, India has come out with repeated statements that the country's stand on Kashmir dispute remains unchanged and it remains a bilateral issue with no scope for any third party intervention.

Despite GOI refuting idea of third party mediation on J&K, the disclosure made by Trump marks a huge policy shift. Even though USA doesn’t hold a great record in resolving protracted conflicts, hope both countries seize this opportunity to forge peace through dialogue. Mehbooba Mufti (@MehboobaMufti) July 23, 2019

On Monday, Donald Trump courted a major controversy with his remarks during a meeting with Pakistan PM Imran Khan when he said that both Khan and PM Narendra Modi have asked him to mediate in the Kashmir dispute.

India immediately shot back to clarify that PM Modi never asked for such favours from Trump.

Trump claimed that Modi and he discussed the issue of Kashmir in Osaka, Japan on the sidelines of the G-20 Summit last month, where the Indian prime minister made an offer of a third-party arbitration on Kashmir.

"I was with Prime Minister Modi two weeks ago and we talked about this subject (Kashmir). And he actually said, 'would you like to be a mediator or arbitrator?' I said, 'where?' (Modi said) 'Kashmir'," Trump said as he held talks with Khan for the first time since the latter came to power in August, 2018.

...that all outstanding issues with Pakistan are discussed only bilaterally. Any engagement with Pakistan would require an end to cross border terrorism. The Shimla Agreement & the Lahore Declaration provide the basis to resolve all issues between India & Pakistan bilaterally.2/2 Raveesh Kumar (@MEAIndia) July 22, 2019

"Because this has been going on for many, many years. I am surprised that how long. It has been going on (for long)," he said, with Khan responding 70 years.

However, the Ministry of External Affairs hit back and rejected Trump's claims.

"We have seen @POTUS's remarks to the press that he is ready to mediate, if requested by India & Pakistan, on Kashmir issue. No such request has been made by PM @narendramodi to US President," Ministry of External Affairs spokesman Raveesh Kumar tweeted.

"It has been India's consistent position that all outstanding issues with Pakistan are discussed only bilaterally. Any engagement with Pakistan would require an end to cross border terrorism. The Shimla Agreement & the Lahore Declaration provide the basis to resolve all issues between India & Pakistan bilaterally," he said.

Soon, the US State Department went into damage control mode and said Kashmir was a "bilateral" issue between India and Pakistan, and the US "welcomes" the two countries "sitting down" for talks.