The Congress core committee met in New Delhi on Friday to discuss the report by party leader Ghulam Nabi Azad on the demand for carving a separate Telangana state out of Andhra Pradesh.
Congress sources said the core group will discuss the report which has been prepared by Azad after talking to party leaders from various parts of Andhra Pradesh.
Azad, the Congress in charge of Andhra Pradesh, is the union health minister.
The core group meeting is being held at 7 Race Course Road official residence of Prime Minister Manmohan Singh.
Congress MP from Nizamabad Madhu Goud Yaskhi said Azad had given his report on the deamand for Telangana to Congress president Sonia Gandhi.
"My indication is that a stand will be taken (by the party) in favour of division of state," Yaskhi told IANS.
He said once a decision is taken by the Congress on demand for new state, United Progressive Alliance (UPA) government will take it up further.
He said other parties such as Telugu Desam Party (TDP) and All India Majlis-E-Ittehadul Muslimeen (AIMIM) seemed to be waiting for the stand of the Congress.
Yaskhi, along with several other leaders from the Telangana region had met Finance Minister Pranab Mukherjee Thursday to press for their demand for creating a new state.
Another party leader, K Keshava Rao, said that party leaders were keen to stay in the capital till a decision is taken on the demand for creation of new state.
The Congress core committee meeting comes amid intensification of the agitation in Telangana for the creation of new state.