The sources said according to a home ministry assessment, security situation was "better" in Assam and Arunachal Pradesh than never before and the imposition of AFSPA could be further reduced.
They said views of the state governments had been sought on the partial withdrawal.
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In May, the Centre through a gazette notification, had declared the entire Assam as a "disturbed" area under AFSPA for three more months, citing various violent activities by insurgent groups ULFA, NDFB and others.
In another notification, the ministry had also declared three districts of Arunachal Pradesh - Tirap, Changlang and Longding - besides areas falling under 16 police stations bordering Assam as "disturbed" under AFSPA for three more months.
The Act has been in effect in Assam since November 1990 while in the three districts of Arunachal Pradesh it has been in force since January 2016.
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