Web Deploy - ERROR_COULD_NOT_CONNECT_TO_REMOTESVC

Web Deploy - ERROR_COULD_NOT_CONNECT_TO_REMOTESVC

We are trying to configure Continues Integration with TFS 2012. While
queing a new build it fails everytime with the error:
Build FAILED. "C:\Builds\86\ProjectName\ProjectName -
DEV\src\ProjectName.sln" (default target) (1) ->
"C:\Builds\86\ProjectName\ProjectName -
DEV\src\Website\ProjectName.csproj" (default target) (2) ->
(MSDeployPublish target) -> C:\Program Files
(x86)\MSBuild\Microsoft\VisualStudio\v11.0\Web\Microsoft.Web.Publishing.targets(4377,5):
msdeploy error ERROR_COULD_NOT_CONNECT_TO_REMOTESVC: Web deployment task
failed. (Could not connect to the remote computer ("ServerName") using the
specified process ("Web Management Service") because the server did not
respond. Make sure that the process ("Web Management Service") is started
on the remote computer. Learn more at:
http://go.microsoft.com/fwlink/?LinkId=221672#ERROR_COULD_NOT_CONNECT_TO_REMOTESVC.)
I have gone through the link and checked all the points mentioned there.
Both Web Management Service and Web Deployment Agent Service are running
fine. Server is 2008 R2 with IIS 7. Web Deployment Agent Service is
running on port - 8172. I have Web Deploy 3.0 running on the server.
Firewall is not blocking any port on the server. What can be the Issue.
Please help!! Thanks in advance.