Kayani, who sought the meeting, called on Sharif at his brother Shahbaz Sharif's residence at Model Town in Lahore this afternoon.
This was the first meeting between Kayani and Sharif since the PML-N emerged victorious in the May 11 general election.
The meeting lasted over three hours and the leaders had lunch together. No other PML-N leaders were present during the meeting.
The army chief briefed the PML-N chief on the security situation across the country. The leaders also exchanged views on the regional situation and the war on terror, sources said.
The two leaders agreed to work together to confront challenges facing Pakistan, including terrorism, Geo News quoted its sources as saying.
They further agreed that all security institutions would work with the civilian government to overcome crises, the report said.
Sharif lauded the security establishment's role in strengthening democracy and allowing the previous civilian government to complete its five-year tenure, the channel reported.
Sharif is poised to become Prime Minister for an unprecedented third time.
In an interview before the polls, Sharif said the Prime Minister would be the army chief's "boss". He also said he did not believe Kayani would seek another extension.
In a separate development, Sharif accepted President Asif Ali Zardari's invitation to a luncheon he is hosting for the visiting Chinese Premier at the presidency on May 22.
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