The Congress election committee met at Sonia Gandhi's residence today and is said to have decided on the alliance, said the report.
On Monday, Congress sources indicated that talks with Nitish Kumar's Janata Dal United (JDU), rival party of RJD, were still on.
Also, sources indicate that Congress is hesitant to give up Madhubani and Motihari seats as they are demanded by Lalu Prasad Yadav.
Also, there are reports indicating that the BJP is also trying to rope in JDU to their camp. As part of that, on Monday, BJP leader Arun Jaitley supported Bihar Chief Minister and JDU chief Nitish Kumar's demand for a special category status for the state.
"Several states in the east have not economically progressed in comparison to the others. Such states aspire to get a special category status which will ensure higher central revenues and grants," Jaitley wrote in his blog.
The special status state issue has created rift between Congress and JDU.