US President Trump with Pakistan Prime Minister Khan at the White House in July. (File)

US President Donald Trump has in a phone conversation asked Pakistani Prime Minister Imran Khan to "moderate rhetoric" with India over the situation in Jammu and Kashmir in an effort to reduce tensions.

Mr Trump's call with Mr Khan - the second in less than a week - came soon after a 30-minute conversation with Prime Minister Narendra Modi on Monday, during which PM Modi raised the issue of "extreme rhetoric and incitement to anti-India violence" by leaders of Pakistan.

Mr Trump spoke by telephone with Mr Khan to discuss "the need to reduce tensions and moderate rhetoric with India over the situation in Jammu and Kashmir," the White House said in a readout of the call.

During the conversation, Mr Trump "reaffirmed the need to avoid escalation of the situation, and urged restraint" on both sides, the White House said.

Spoke to my two good friends, Prime Minister Modi of India, and Prime Minister Khan of Pakistan, regarding Trade, Strategic Partnerships and, most importantly, for India and Pakistan to work towards reducing tensions in Kashmir. A tough situation, but good conversations! — Donald J. Trump (@realDonaldTrump) August 19, 2019

The two leaders also agreed to work towards strengthening US-Pakistan economic and trade cooperation, it added.

In his telephonic conversation with Mr Trump, PM Modi highlighted the importance of creating an environment free from terror and violence and eschewing cross-border terrorism without exception, the Prime Minister's Office (PMO) said in a statement.

"In the context of the regional situation, the prime minister stated that extreme rhetoric and incitement to anti-India violence by certain leaders in the region was not conducive to peace," it said.

Earlier this month, India scrapped special status from Jammu and Kashmir's and divided it into two Union Territories, evoking strong reactions from Pakistan.

White House Principal Deputy Press Secretary Hogan Gidley said Mr Trump spoke with PM Modi to "discuss regional developments" and the US-India strategic partnership.

The President conveyed the importance of reducing tensions between India and Pakistan, and maintaining peace in the region, he said.

"The two leaders further discussed how they will continue to strengthen United States-India economic ties through increased trade, and they look forward to meeting again soon," Mr Gidley added.