NEW DELHI, Jan 17: India was reported on Wednesday to be poised to join a US-led club involving Australia, and Japan in a major policy move aimed obliquely at isolating China.

The Hindu reported the move as senior Indian and Chinese officials began a fresh round of talks to resolve their Himalayan border dispute that led to a brief war in 1962.

"So far, India has not been involved in a multilateral dialogue that involves the US and countries such as Australia and Japan, close allies of Washington in the Asia-Pacific region," the Hindu reported.

"There is little doubt that the very idea of such a dialogue flows from India's dramatically transformed relationship with the United

States," it said. "Not so long ago, New Delhi would have rejected out of hand any such idea."

The Hindu quoted unnamed sources as saying that not only was India comfortable with the idea of the four-nation club, but it also put forward specific proposals.

The sources believe that the initial dialogue in the framework could take place at the level of officials, possibly Foreign Secretaries.

It said the idea behind this dialogue was to be presented as involving that believe in ‘democracy and human rights.’

"Clearly, as and when such a dialogue begins, it will mark a major shift in Indian foreign policy," the newspaper said.

India is a member of a trilateral framework of discussion involving China and Russia but it has not sounded keen to build it into an alliance.

The new four-cornered dialogue between India, Japan, the United States and Australia "is in an advanced stage of consideration," the Hindu said.

India has been studying the idea with Japan and the issue figured during Prime Minister Manmohan Singh's recent talks with Prime Minister Shinzo Abe in Tokyo.

The Hindu noted that there was an indirect reference to this dialogue in the Dec 15, 2006, joint statement issued by India and Japan.

"The two leaders share the view on the usefulness of having dialogue among Japan, India and other like-minded countries in the Asia-Pacific region on themes of mutual interest," the statement said.

On Tuesday Indian Foreign Minister Pranab Mukherjee had said India's relations with Pakistan and China were poised for a ''positive transformation'' while in the coming years, attempt would be made to inject ''real political content'' into the strategic partnerships with all major powers.