China's Ministry of Foreign affairs said Xi and Modi would hold an "informal meeting" on April 27 and 28 in the city of Wuhan, in central China.
Foreign Minister Wang Yi called the visit a "new milestone" Sunday, saying that the two leaders should "cement strategic trust" and "properly settle disputes."
However, the two countries have sought to reboot their relationship since late 2017, when the two reached an apparent resolution in the Doklam border dispute.
Agreements on rivers, pilgrims
India's Foreign Minister Sushma Swaraj said the two countries had agreed to re-open the Nathu La Pass, a key route for Indian pilgrims to reach Mount Kailash, a holy mountain for Buddhists and Hindus. She also said Beijing and New Delhi will resume sharing data on the Brahmaputra and Sutlej rivers, crucial to predicting floods in India's northeast.
"The progress made in the last few months has also contributed to building trust and understanding in our bilateral engagement," she said during a visit to Beijing.
Manoj Joshi, a fellow at the Observer Research Foundation, told CNN last month that India is keen to keep ties balanced, especially with China growing closer to rival Pakistan.
"Relations stand at an uneasy place, with India trying to backtrack somewhat and mend fences that were broken in the last two years," he told CNN.
He added China was also seeking progress as it didn't want "India to drift back into the American camp."
Sugam Pokharel in Delhi and Serenitie Wang in Beijing contributed to this report.