AAP will contest the bypolls for 13 wards of Delhi's three civic bodies which are expected to be held next month and is likely to announce its candidates soon.
"We have decided to contest the bypolls and are working on it," said an AAP leader.
This will be AAP's maiden outing in the municipal corporation polls after the party's stupendous feat in the Assembly election last year when it won 67 of 70 seats.
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"The party's Delhi unit is busy with it, but we have still not finalised the candidates," the AAP leader said.
Full-fledged polls to the MCD are expected to take place in 2017.
In January, the Delhi High Court has ordered bypolls to be held at the earliest.
Most of these wards are in South Delhi Municipal Corporation, where several councillors have been elected as MLAs.