Pakistan Cricket Board (PCB) and Indian Cricket Board (BCC) had proposed the series and approached their respective governments for clearance.
Official sources in the ministry of inter provincial coordination said that the Prime Minister gave the clearance before leaving for a official tour to Malta.
"The PM has responded to the letter sent to him by the PCB Chairman Shaharyar Khan and he has said that Pakistan should play India in Sri Lanka for a short series given the current security situation," a source told PTI.
A PM house statement was also quoted in the 'Express Tribune' which said, "Given the current security situation, PCB should hold short series with India at a third location."
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It also said the PM House had sent a letter to the PCB granting them permission for the series and directing them to carefully view the security situation as well.
BCCI are yet to hear from the Indian government on the series.
(REOPENS FGN 3)
In New Delhi, Pakistan High Commissioner Abdul Basit said he would welcome any move favouring resumption of cricket ties between the two countries.
"Let's see, obviously we would welcome if the governments decide," Basit told reporters here.