"We will form the next government in Jharkhand with BJP," said Hemlal Murmu, a senior JMM leader and legislator.
The move came after JMM refused to deter from its demand for chief ministerial post for its JMM Chief Shibu Soren in return for its support to any political party to form coalition.
BJP has reportedly agreed to settle with the minimum 7 seats including the post of deputy chief minister, while All Jharkhand Students Union (AJSU) has demanded three Cabinet berths and a post of deputy chief minister for its party President Sudesh Mahto.
According to sources JMM has agreed to hand over the deputy chief minister's post to both BJP and AJSU and five and two cabinet berths as per the parties' demand.
The fractured verdict in Dec 23 Assembly polls result paved way for coalition government as none of the single political party or combine could achieved the simple majority mark of 41 seats in the 81-member assembly.
Congress and its ally, the Jharkhand Vikas Morcha-Prajatantrik (JVM-P) won 25 seats. JMM and BJP combination won 18 seats each.
JMM had agreed to extend its support to any party which would give the CM post to its chief Shibu Soren.
Finding the condition unacceptable, Congress and JVM-P is holding a second round of talks to stich together a coalition government.
"There could be a government without the JMM," JVM-P President Babulal Marandi, adding that JMM's demand was unacceptable.