Remote user authentication and key agreement scheme using smartcards is a very practical solution to validate the eligibility of a remote user and provide secure communication later. In this paper, we propose an efficient dynamic-id based remote user authentication and key agreement scheme using smartcards. The major merits of this scheme include, the scheme does not need any verification table, users can freely choose and change their passwords, the computation and communication costs are very low as our scheme uses one-way hash functions, block ciphers and smartcards. In addition the scheme offers mutual authentication between servers and users and it is a nonce based scheme which does not have a serious time-synchronization problem. The scheme is secure against Id-theft, can resist against replay attacks, stolen verifier attacks, guessing attacks, reflection attack and offers forward secrecy and known-key security.