Prime Minister-designate Manmohan Singh on Friday discussed the issue of government formation with Congress president Sonia Gandhi for five hours.
Congress leaders Arjun Singh and Pranab Mukherjee, who have been in touch with the party's allies in connection, were part of the talks.
The meeting took place as Rashtriya Janata Dal chief Laloo Prasad Yadav sent a list of demands to the Congress.
Congress leader Kapil Sibal described the demands as "sensitive to government formation".
Yadav, who left for Patna in a huff on Thursday evening and returned to New Delhi in the morning, met Nationalist Congress Party chief Sharad Pawar at the latter's residence in New Delhi.
He later said a decision on joining the government would be taken later.
In the evening the NCP leader Praful Patel said his party was ready to join the government. He, however, left it to Manmohan Singh to decide which portfolios to allocate to the NCP members.