The announcement came at a crucial time when a senior leader of the influential Politburo of China's Communist Party, Zhou Yongkang, is in Delhi at Congress party's invitation.
With ties strained over stapled visas being issued by Beijing to Kashmiris, and defence exchanges put on hold as a result, sources say Zhou's visit is being seen as an opportunity for open and blunt discussion on all the issues.
Clearly realising the need for better communication, a much delayed hotline between the two Prime Ministers is all set to become operational.
"We welcome premier Wen Jiabao's proposed visit before the end of the year. He will receive a very warm welcome. The hotline between the two Prime Ministers will soon become operational," External Affairs Minister SM Krishna said.
Ties between the two neighbours have been strained and with Wen Jiabao visiting India by the end of the year, Indian officials are hoping some of the edges are smoothed out.