However, K C Tyagi, JD(U) principal general secretary and another close confidant of Yadav, termed any such proposed move as "rumour".
Differences have surfaced between Yadav and party president Nitish Kumar over joining hands with the BJP after dumping the coalition with the RJD and the Congress.
Vijay Verma, a senior JD(U) leader and a trusted aide of Yadav, said, "Sharadji is in touch with old friends and is pondering over the political situation. Forming a new party is one of the options to which a serious thought is being given."
Verma said that the veteran socialist leader has ruled out joining the NDA government at the Centre as a minister.
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Asked who are the others to whom Yadav has spoken, he refused to take names but said "his (Yadav's) social network is widespread".
JD(U) MPs Ali Anwar and M P Veerendra Kumar, who opposed the decision to go with the BJP, have met Yadav over the issue.
He had later publicly expressed unhappiness over joining hands with the BJP.
"People's mandate was not for it (joining hands with the BJP)," Yadav had said outside the Parliament on July 31 and termed the disintegration of the Grand Alliance "unpleasant" and "unfortunate".
Bihar JD(U) spokesman Ajay Alok dismissed media reports of Yadav being angry with the party.
"According to Hindu calender after current Sawan season comes Bhado and then Sharad...There is no anguish anywhere," he said.
"I have seen Sharadji closely for the past 40 years and know that he had parted ways with Lalu Prasad on the issue of corruption...How can he go with Lalu?" he asked.
Kumar had on Monday said, "It is not necessary that everybody should always agree on everything. One can have divergent views. The decision to break the Grand Alliance was taken by Bihar JD(U) at its executive meeting which I had to abide by."
"The JD(U) is registered with the Election Commission as a regional party in Bihar and hence going against the decision of the state party was not possible for me," he had said and added that the JD(U) national executive meeting here August 19 would deliberate on the issue in detail.
He had, however, clarified that Yadav has not been requested to join the RJD but be part of a country-wide movement against communal forces.
Prasad has also invited Yadav for a RJD rally at Patna on August 27.