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SRINAGAR, India, Aug 24 (Reuters) Suspected rebels shot dead eight Muslim villagers, including three women, in an overnight attack in India's Kashmir, police said on Saturday.

The attack came as U.S. Deputy Secretary of State Richard Armitage took a new South Asia peace mission to Islamabad from New Delhi after Pakistan ratcheted up tensions with India by accusing it of an air attack in disputed Kashmir. India denies the claim.

"The incident took place near Thanamandi area of Rajouri district. Eight people were killed," a police official said, adding that the assault took place early on Saturday.

Armitage met officials in New Delhi on Friday in bid to calm tensions between the two nuclear-armed rivals.

India and Pakistan have massed a million men along their border since a December attack on the Indian parliament which New Delhi blamed on Pakistan-based guerrillas. 

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