Indications in this regard came on a day when Army Chief Gen Bikram Singh met Defence Minister A K Antony here today.
It was not clear what transpired between them during the meeting.
Sources, however, said reopening of the Pathribal case cannot be ruled out considering the controversy and the sensitive nature of the incident.
Earlier in the day, Antony reviewed the security situation in the country with National Security Adviser Shivshankar Menon and the chiefs of Army, Air Force and Navy.
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The force is facing criticism from several quarters including Jammu and Kashmir Chief Minister Omar Abdullah who plans to take it up with Prime Minister Manmohan Singh.
In the 2000 encounter, five alleged civilians were killed on the ground that they were foreign militants and the case was handed over to the CBI.
The agency alleged in 2006 that five Army personnel-- Brig Ajay Saxena, Lt Col Brahendra Pratap Singh, Maj Saurabh Sharma, Maj Amit Saxena and Subedar Idrees Khan-- were involved in the gunning down of five villagers, dubbing them as foreign militants before the media.