Several government ministers, along with negotiators met the Khan and his party at the Mariott Hotel in the early hours of Thursday. The government will analyse and examine PTI's six-point demand before beginning talks.
Meanwhile, PM Sharif is expected to address Pakistan's National Assembly later in the day.
The six-pointers placed by the PTI include "PM Sharif and his brother Punjab Chief Minister Shahbaz Sharif, installation of an interim government, electoral reforms prior to fresh elections, re-elections for all assemblies, bringing culprits of alleged 2013 vote fraud to book and an audit of the government's expenses."
Prior to the meeting, Khan addressed his followers saying " Mr Sharif must go before he would participate in negotiations. To that end, he said he was even ready to sleep alone in a container."
However, dropping the idea of storming the PM's residence if he did not resign, Khan said,""I thought I would take you all to the Prime Minister's house today. (But) his heart is already in bad shape. If I ask my followers to go in that direction and he has heart attack - I cannot do that".
Reports suggest that Khan backtracked after the Army suggested a political solution to the crisis. A tweet from military spokesman General Asim Bajwa has called upon stakeholders to resolve impasse through "dialogue in larger national and public interest."