The party took the decision to form the government at a meeting of political affairs committee after analysing the results of the public referendum it had carried out in the last few days on the issue.
Arvind Kejriwal, who led the debutant party to a spectacular victory in the polls winning 28 seats in the 70-member assembly, will be the Chief Minister of Delhi if the Lt Governor allows AAP to form the government, party leader Manish Sisodia said.
"We were called by the Lt Governor to discuss government formation on December 14. We had sought time to take a decision as ours is a party of common people and we want to their views.
"We got responses from the citizens through website, phone calls, SMS and by holding public meetings and most of them favoured government formation by AAP. We are now going to give the letter to LG saying that AAP is ready to form the government," Kejriwal told reporters at AAP's office in Kausambi here.
There has been deadlock over government formation in Delhi for nearly two weeks after the announcement of the results on December 8. AAP has 28 seats while Congress with 8 has agreed to give outside support. BJP is the single largest party with 31 seats in its kitty.