Pakistan Prime Minister Nawaz Sharif has said that former military ruler Pervez Musharraf offered him an "underhand" deal to form a joint government but he turned it down.

Addressing the ruling Pakistan Muslim League-Nawaz (PML-N) parliamentary committee on Tuesday, Sharif said: "Musharraf wanted a secret deal with me in 2007, but I declined."

Musharraf was the then Pakistan President and Sharif had just returned from exile.

The Pakistani newspaper on Wednesday quoted Sharif as saying that he didn't believe in making clandestine deals with people who had ruined people's aspirations.

He said his family did not want to leave Pakistan after the Musharraf-led military coup but was forced to go into exile by the military dictator.

"We left the country in a miserable condition and were not allowed to return for a long time," he said.

The Prime Minister noted that Musharraf, a former Pakistan Army chief, was now facing a similar fate and had left the country in disgrace.

"Now, Musharraf is willing to return to the country, but he cannot... it's divine retribution for his actions," Sharif said.

Sharif was toppled by Musharraf in a 1999 coup, after which Sharif and his family went to live in Saudi Arabia.

However, Sharif's assertions were disputed by former Musharraf aide and All Pakistan Muslim League member Ahmed Raza Kasuri, the Pakistani newspaper reported.

"I have been working with Gen. Musharraf for a long time and I have never heard any such thing," he said.