Indian Muslim leaders have rejected a Hindu proposal aimed a resolving a bitter dispute over a religious site claimed by both groups. 

The rejection was announced Sunday in New Delhi, where Muslim leaders met to consider the compromise. 

The dispute involves a site in the holy town of Ayodhya, in Uttar Pradesh state, where a 16th century mosque stood until 10 years ago, when it was destroyed by Hindus claiming it as a site of an ancient temple dedicated to the Hindu god King Ram. 

The compromise proposal called for a Hindu temple to be built near ruins of the mosque, rather than on the same site, as hard-line Hindus have been demanding. 

The destruction of the mosque in 1992 sparked sectarian violence, killing thousands of people. The worst clashes since then started late last month when Muslim activists set fire to a train carrying mostly Hindu activists returning from Ayodhya. Fifty-eight people died in the blaze. 

The incident triggered riots across the western state of Gujarat that left more than 700 people dead. Most of the victims were Muslims. The violence has quieted in recent days, but officials are concerned it could resume ahead of a planned Hindu rally at Ayodhya on Friday. 

Indian Prime Minister Atal Behari Vajpayee told a group of Islamic clerics Saturday that his government will abide by a pending Supreme Court ruling on whether the World Hindu Council would be allowed to hold the ceremony. 

Some information for this report provided by AFP and Reuters. 

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