Is there any way of finding the longest common subsequence of two sequences in O(NlogN) time?
I read somewhere that there is a way to achieve this using binary search.
I know the dp approach that takes O(N2) time.
For the general case, the O(N^2) dynamic programming algorithm is the best you can do. However, there exist better algorithms in some special cases.
This is a very common situation. Sequences consisting of letters from some alphabet (e.g. English) lie in this category. For this case, the O(N*M) algorithm can be optimised to get an O(N^2/logN) with method of four Russians. I don't know how exactly, you can search for it.
An example problem is "Given two permutations of numbers from 1 to N, find their LCS". This one can be solved in O(N*logN).
Let the sequences be A and B.
Define a sequence C. C[i] is the index of B[i] in A. (A[C[i]] = B[i])
LCS of A and B is the longest increasing subsequence of C.