ST. JOHN'S, N.L. - Defence Minister Peter MacKay is denying reports from Afghanistan that Canadian soldiers are reaching out to members of the Taliban in order to establish peace in the war-torn country.

Canadian military officials in Afghanistan have been quoted as saying they're trying to engage in a dialogue with insurgents -- a move that federal New Democrat Leader Jack Layton has long supported.

"I was pleased to hear that our military on the ground were looking at opening up lines of communication with the insurgents,'' Layton said Saturday while attending a provincial NDP convention in St. John's.

"Our party has always argued that we've got to carve out a path towards peace, it's got to involve some negotiations and discussions, even with those combatants with whom we're engaged in combat.''

Lt.-Col. Gordon Corbould, the new battle group commander, and Sgt. Tim Seeley, a civilian-military co-operation officer for Canada's Provincial Reconstruction Team, were quoted Thursday by the Globe and Mail as saying that channels were being opened to moderate Taliban.

Other officials in Kandahar, who spoke privately, backed up the military's assessment, calling it creative thinking.

But MacKay, who told The Canadian Press on Friday that those same officials don't speak for the federal government, took pains Saturday to reiterate Ottawa's position.

"We are not talking to the Taliban. We are not having direct discussions with terrorists. We won't, will not, that will not change,'' MacKay said.

"What we are doing obviously in reconstruction and development and daily contacts that happen is encouraging people to move away from the Taliban's influence, to renounce violence.''

The Afghan government has the lead responsibility to draw people away from the Taliban's grip, an effort the Canadian military supports, MacKay said.

The notion that Canadian soldiers would be stepping up with Afghans to encourage insurgents in the ravaged province of Kandahar to lay down their weapons and talk has garnered much praise in Kandahar City.

Influential leaders such as Ahmed Wali Karzai, the younger half brother of Afghan President Hamid Karzai, say it's just the sort of push needed to quell the bloodshed.

Tribal leaders in the hotly contested Panjwaii district, where many Canadian soldiers have died or been injured, have also supported the approach.

Nearly two years ago, the NDP suggested peace talks be initiated with combatants in Afghanistan -- prompting federal Conservatives to call Layton "Taliban Jack.''

"Two years ago, the military was beginning those kinds of discussions, we supported that, said so very publicly,'' Layton said.

"People started calling us names and all of a sudden the official government position was that there couldn't ever be any discussions. We think that that's wrong.''

Karzai has called for peace talks with Taliban leader Mullah Mohammed Omar, but hard-liners have demanded the removal of all foreign forces before discussions can begin. They also want a stricter interpretation of Islamic law, political posts and possibly control over some districts and provinces.

Canada and the United States have been the only NATO allies in southern Afghanistan to refuse to speak to militants. The British and the Dutch have both made attempts to either engage in dialogue or establish local ceasefires.