Sources said the meeting was a result of efforts by 'mutual friends' to reunite the PML factions, a private news channel reported on Thursday, Dec 25.
The meeting created a lot of interest in political circles across the country and some analysts started talking about its implications for the country's political set-up.
But the report fell through within an hour when PML-N's legislator Captain Safdar and Marvi Memon of the PML-Q contradicted it and said that the two leaders had attended a wedding in Dubai, but did not meet.
However, an associate of Sharif, who did not want to be identified, insisted that the meeting had taken place, adding that a UAE minister who has made heavy investments in Pakistan in different projects hosted it.
According to him the two leaders discussed possible cooperation between their parties before the Senate election in March.
"Both the parties have a common cause that the Pakistan People's Party should not take the post of the Senate chairman," the PML-N leader said.
He said the two parties would also explore cooperation in Punjab where relations between the PPP and PML-N were getting tense.
He said Pervaiz Elahi's son Moonis Elahi and Nawaz Sharif's sons Hassan Nawaz and Hussain Nawaz and nephew Hamza Shahbaz were present at the meeting.
Meanwhile, former Information Minister Muhammad Ali Durrani has welcomed the 'Nawaz-Elahi meeting', saying it would pave the way for a national consensus government.
Nawaz arrived in Dubai on Wednesday on a private visit.