India firmly rejected Trump's offer to mediate on Kashmir issue. (file photo)

The US would like to see improved relations between Pakistan and India and that is why President Donald Trump offered his "assistance" to resolve the Kashmir issue, a senior State Department official said on Thursday.

The official, on the condition of anonymity, was responding to a question on the position of the US on the Kashmir issue after Trump last week offered to be the "mediator" between India and Pakistan on the issue during his meeting with Pakistan Prime Minister Imran Khan at the White House.

India firmly rejected Trump's offer, saying that New Delhi's consistent position has been that all outstanding issues with Pakistan are discussed only bilaterally.

"On Kashmir as I said, we would all like to see improved relations between India and Pakistan. That''s why you heard the president''s offer of assistance," the official said.

"We recognise that Kashmir has been a bilateral issue but there are opportunities as Pakistan takes steps that build confidence in its own efforts to counter terrorism for their ultimately towards a constructive dialogue. We stand ready to assist if asked by the parties to do so," the official said.