The meeting assumes significance as the Ambani-led Reliance-Hyundai consortium last year won the Rs 5,000 crore contract to extend the Bandra-Worli Sealink till Haji Ali.
The consortium was unable to tie up funds by the Dec 2010 deadline and sought a three-month extension for the same.
The coastal road option is being discussed to save cost.
MSRDC sources say the coastal road option will help save the government over Rs 3000 crore.
An official from Chavan''s office said the one on one meeting between Chavan and Ambani took place at the state government''s Sahyadri guest house here last night and lasted around half an hour.
However, the officials declined to divulge details.