Both the chief ministers told reporters after the meeting here that the talks were held in a cordial atmosphere and with "give and take" approach.
During the meet, issues related to employees distribution and entrusting responsibilities to the chief secretaries of both the states, were discussed.
Earlier, Governor Narasimhan had brought Naidu and Rao together on the occasion 'At Home' hosted at the Raj Bhavan on Independence Day.
Speaking to reporters, Rao said the discussion was held on three key issues -- on legislature accommodation (sharing of legislature buildings), distribution of employees and sharing of state-level educational institutions.
"Issue of legislators' accommodation has been resolved. On distribution of employees, Kamalanathan committee has been set up. The committee is looking into distribution of 67,000 employees belonging to the state cadre, of which 22,000 vacancies are there. And only 45,000 employees are to be divided. We have told chief secretaries to sit and discuss the issue...They will sort out that problem," Chandrasekhar Rao said.