Jammu and Kashmir Chief Minister Mufti Mohammad Sayeed might get a temporary extension at the helm, Congress sources said on Sunday.
Mufti called on Congress president Sonia Gandhi at her residence 10 Janpath and spoke to her about transfer of power in the state for 30 minutes.
The CM's daughter and president of the People's Democratic Party Mehbooba Mufti and political advisor of Sonia Ahmed Patel were also present at the meeting.
Mufti and his daughter flew into the capital at Sonia's instance.
Briefing newsmen after the meeting, Defence Minister Pranab Mukherjee said that Sonia will take a decision about the transfer of power after consulting her party colleagues.
"The decision will be communicated in due course," he said.
He refused to entertain any question from the media saying that "after my statement there should be no room for confusion," Mukherjee said.
However, highly placed sources in the party said Mufti will get a temporary extension,
Mufti looked visibly relieved and could be seen smiling.
Prior to his meeting with the Congress president, Mehbooba Mufti had a one-on-one discussion with Sonia.
Mufti has been seeking extension of his rule under the present circumstances when the state administration is busy providing succour to the victims of the October 8 earthquake.
Sources close to Mufti refused to confirm or deny whether the chief minister was happy with the meeting or not.
Before meeting Sonia, Mufti spoke to Pranab Mukherjee in the evening. Pranab in turn briefed the Congress president.
Sonia is scheduled to discuss the issue with colleagues including Gulam Nabi Azad, who is the contender.
She is meeting Prime Minister Dr Manmohan Singh later on Sunday night to discuss relief and rehabilitation programme in Jammu and Kashmir and also discuss the change in the leadership.
National Panther's Party president Bhim Singh said both the Congress and the PDP have failed to honour their commitment to the people of Jammu region and hence the governor of the state should invoke article 92 of the Jammu and Kashmir constitution and install an all-party government in the state for the remaining three years.
Sonia is also likely to hold discussions with Bhim Singh and the Communist Party of India-Marxist, who are partners in the state coalition.
Mufti, under an agreement with the Congress, had become chief minister for the first three years on November 2, 2002 and is due to step down on November 2, 2005.
"We would also be consulting coalition partners before taking any decision," said a senior Congress leader.
