"The alliance is intact," BJP national spokesman Prakash Javadekar said after a two-hour discussion with TDP Chief N Chandrababu Naidu here this afternoon.
"The alliance will continue," TDP spokesman also confirmed.
However, both did not divulge any more details as Javadekar and TDP MP Y S Chowdary and other leaders left for Venkaiah Naidu's residence for further talks.
Though the TDP wanted the BJP to part with 7 out of the 14 Assembly seats, the latter reportedly agreed to give away only the Ichchapuram seat.
The BJP also agreed to change its nominees in some seats where the TDP raised objection over fielding of "weak" candidates.
Clarity on seat sharing between the two parties is expected late this evening.