After the 15-minute meeting at the Prime Minister's residence, 56-year-old Mehbooba told reporters it was "very positive" and "good" in addressing issues pertaining to the people of the state and that she was "very satisfied".
The meeting took place a day after Mehbooba arrived here barely three days after she returned to Kashmir Valley after her talks with BJP President Amit Shah had hit a road block.
"We are seeing a stalemate for last two to three months over government formation in the state but today I am satisfied. I am very satisfied," she said and announced that the party's future course of action would be announced at the PDP legislature party meeting this Thursday.
More From This Section
Asked about the Modi-Mehbooba meeting, Union Minister Prakash Javadekar said at a BJP briefing it was "constructive and good".
A BJP source said the alliance government in the state could be in place in the next one week.
Former Deputy Chief Minister and senior BJP leader Dr Nirmal Singh termed the meeting as "positive" for government formation.
"It (meeting between Mehbooba and Modi) is positive development(for the formation of new government). It is a good thing and we welcome it", Singh told reporters in Jammu.
On government formation in the state, she said, "As I said I will talk to my MLAs because that is the forum. This is not the place. There is a particular place to make such announcements. I will go back to Srinagar and take the next step."
Sources in the PDP said that after the legislative party meeting, the two sides would meet for government formation and giving final touches to the cabinet which will be headed by Mehbooba, the first woman Chief Minister of the state.
Today's meeting was eyed with suspicion by opposition National Conference and Congress who asked the PDP leadership to come clean on the deal with BJP.