The Joint Working Group on Jet Engine Technology met last week at the Wright Patterson Air Force Base at Ohio.
American Ambassador here Richard Verma said both sides had "productive discussions" for future collaboration.
However, sources said that India, which has not been able to get requisite power from its indigenous Kaveri engine for fighter aircraft, is seeking "hot engine" technology which the US considers as the crown jewel in the jet engine technology.
The new engine is likely to be for the Advanced Medium Combat Aircraft (AMCA) which is a single-seater, twin-engine fifth-generation stealth multi-role fighter planned by DRDO.
Meanwhile, the US has already updated its policy on gas-turbine engine technology transfer to India to expand cooperation in production and design of sensitive jet engine components.
Collaboration for jet engine is one of the key components of the ambitious Defence Technology and Trade Initiative (DTTI).