Pakistan is preparing international legal action over India's suspension of a key river water-sharing treaty, a government minister told Reuters, as tensions intensify between the neighbours following an attack on tourists in India-administered Kashmir.

ISLAMABAD (Reuters) - Pakistan's defence minister said on Monday that a military incursion by neighbouring India was imminent in the aftermath of a deadly militant attack on tourists in Kashmir last week, as tensions rise between the two nuclear-armed nations.

India blames Pakistan for an attack on its tourists and threatens to disrupt Pakistani water supplies. Islamabad says that move would be an act of war.