This was decided after an hour long meeting between National Conference leader Omar Abdullah and Congress president Sonia Gandhi late on Tuesday in New Delhi. The National Conference will field former ministers - Sajad Ahmad Kichloo and Nasir Aslam Wani - for two other seats.
The NC-Congress combine would field candidates for only three out of the four seats to ensure Azad's victory in these elections, sources said.
The Bharatiya Janata Party has also announced to field two candidates - Chander Mohan Sharma and Shamsher Singh - for two seats, while the Peoples Democratic Party (PDP) has fielded Nazir Ahmad Laway and Fayaz Ahmad Mir for the other two seats.
The BJP and the PDP also won't be fighting against each other in the polls.
The state legislative assembly with 87 members is the electoral college for the Rajya Sabha elections.
The PDP has 28, the BJP 25, the National Conference 15, the Congress has 12 seats, besides seven others.
Elections for the Rajya Sabha will be held on Feb 7 inside the state legislature complex here.