"On China, we are agreeable to responding positively to its desire to seek a co-operative relationship with Saarc," India's junior minister for foreign affairs E Ahamed told reporters.
"An appropriate mechanism (for the co-operation) is under discussion," he added.
The leaders of Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka are due to attend the 13th Saarc summit in Dhaka this weekend.
Indian foreign secretary Shyam Saran told reporters that all seven members had noted Beijing's desire to be associated with the grouping during discussions on Thursday. "How exactly this is to be worked out is what we are currently discussing," he said.