PM Modi and Donald Trump discussed the Jammu and Kashmir issue at the G7 summit in August

The relationship between India and Pakistan is "less heated" now than what was two weeks ago, United States President Donald Trump has said, reiterating his offer to help the two South-Asian neighbours only if both of them want.

The comments by Donald Trump were his first and comes two weeks since his meeting with Prime Minister Narendra Modi on the sidelines of the G7 summit in France on August 26.

"India and Pakistan are having a conflict over Kashmir as you know. I think (it) is a little bit less heated right now than (what) was two weeks ago," President Trump told reporters at the White House on Monday.

Tensions between the two neighbours escalated after New Delhi revoked Jammu and Kashmir's special status by scrapping provisions of Article 370 of the Constitution.

"I get along with both countries very well," President Trump said while responding to a question on his assessment of the situation between India and Pakistan. "I am willing to help them if they want. They know that. That (offer) is out there."

During a meeting with visiting Pakistani Prime Minister Imran Khan in July, Donald Trump had offered to mediate between the two countries on the issue of Kashmir.

India was quick to reject the offer, saying the Kashmir issue was bilateral. It has also dismissed President Trump's astonishing claim that PM Modi had asked him to mediate.

During his meeting with PM Modi in France last month, President Trump had said Kashmir is an issue that needs to be resolved between India and Pakistan.