ISLAMABAD - Pakistan and the United Sates are limping towards an agreement that would set new rules of engagement particularly in the intelligence sharing field for mutually desired bilateral cooperation in counter-terrorism, sources said on Friday. Well-placed diplomatic and military sources told The Nation that Islamabad and Washington are about to agree to new rules of engagement to prevent incidents like Raymond Davis or US unilateral raid at OBL compound in Abbottabad. Neither the United Sates nor Pakistan can afford a breakdown in their relations, the sources said, adding when they have a common threat, therefore, they need to have cooperation to jointly fighting the enemy. The sources said that relations between the two countries remain strained since the two incidents that had breached Pakistans trust on the United Sates. However, Pakistans taken position for evolving new rules of endearment has pushed the United Sates to agree on a well-defined mechanism that could prevent such incidents in future. According to the sources, the recent meeting of the US ambassador to Pakistan Cameron Munters meeting with Chief of Army Staff General Ashfaq Parvez Kiyani on Wednesday, which was requested by the US Ambassador, discussed measures to bolster cooperation between the two countries. Ambassador Munter had a very good meeting with General Kiyani, a senior US Embassy diplomat told The Nation while quoting the Ambassador as saying. The sources said that both of them discussed prospects of renewed cooperation in counter terrorism particularly cooperation in intelligence sharing. The US Ambassador had called on General Kiyani to exchange views on the curbs being imposed by Pakistan on the movement of the US diplomats. According to the sources, General Kiyani had reiterated Pakistans stance that calls for agreement on new rules of engagements whereby CIA would not run clandestine parallel operations in Pakistan as had happened in the case of Raymond Davis. The sources said that General Kiyani had made it clear to the US that no such operations would be allowed which hamper Pakistans security interests. The sources further said that hectic diplomatic efforts were underway by the two estranged strategic partners for significant improvement in their relations ahead of the crucial visit of Prime Minister Syed Yusuf Raza Gilani to the United Sates next month.