The Congress' core group on Jammu and Kashmir met today to discuss the political situation in the state.
The group also includes senior Congress leaders Karan Singh, P Chidambaram, Congress general secretary in charge of the state Ambika Soni and Jammu and Kashmir Congress chief Ghulam Ahmed Mir.
The party will hold a meeting of its legislators in the state in Srinagar this week and discuss the way forward, sources said.
The Congress is in a wait and watch mode in the state, which is under Governor's Rule after the BJP pulled out of its alliance with the PDP.
There are reports of the National Conference and the PDP approaching the Congress for government formation in the state.
However, senior Congress leader Ghulam Nabi Azad has ruled out that the party will form a government with the PDP.
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