"We are in the process of taking a decision," he said, amid a raging protest in Telangana region for a separate state, to be carved out of Andhra Pradesh.
According to Chacko, "consultations are on at all levels and are in an advanced stage" with various stakeholders. He expressed hope that "an amicable solution would emerge soon".
He refused to comment if the decision could come before parliament's budget session begins in the third week of February.
The Congress and the central government have faced flak for deferring the Jan 28 deadline for a decision on the vexed issue, set by home minister Sushilkumar Shinde Dec 28, 2012, after an all party meet to evolve consensus.