The MQM, the single largest party in Pakistan's biggest city Karachi, has been at loggerheads with the PPP since before the last general elections held in May, 2013 in which the PPP won enough seats to retain the provincial government.
Sources said the new development had come after senior MQM leaders met with the PPP chairperson and former President, Asif Ali Zardari, in Dubai earlier this week.
"The PPP has now offered five ministries to the MQM to join the government and this include the ministries of local bodies (a sore point between the two parties), home department and finance," a source said.
Political analysts have blamed the ongoing violence in the city to the differences between the PPP and MQM who were coalition partners when the PPP ruled the centre in the last government.
The MQM has been complaining about their workers being kidnapped and tortured or killed in the ongoing operation in the city ordered by the federal government.