New Delhi: Former JD (U) president Sharad Yadav is likely to form a new party to remain with Bihar’s Mahagathbandhan. A close confidante of Yadav has indicated that he could form a new party to remain with Bihar's Mahagathbandhan.

Contradicting the report, KC Tyagi, JD(U) principal general secretary and another close confidant of Yadav, termed any such proposed move as "rumour".

Differences have surfaced between Yadav and party president Nitish Kumar over joining hands with the BJP after dumping the coalition with the RJD and Congress.

Vijay Verma, a senior JD(U) leader and a trusted aide of Yadav, said, "Sharadji is in touch with old friends and is pondering over the political situation. Forming a new party is one of the options to which a serious thought is being given."

Yadav had emphatically said that he would continue to be part of the coalition of secular parties and had met Congress leader Gulam Nabi Azad and CPM leader Sitaram Yechury, he said.

Verma said that the veteran socialist leader has ruled out joining the NDA government at the Centre as a minister.

JD(U) MPs Ali Anwar and M P Veerendra Kumar, who opposed the decision to go with the BJP, have met Yadav over the issue.

"People's mandate was not for it (joining hands with the BJP)," Yadav had said outside Parliament on July 31 and termed the disintegration of the Grand Alliance "unpleasant" and "unfortunate".

Tyagi said, "Yadav had expressed surprise (over decision to join hands with the BJP) but never said I protest against this."

"I have seen Sharadji closely for the past 40 years and know that he had parted ways with Lalu Prasad on the issue of corruption ... How can he go with Lalu?" he asked.

Kumar had on Monday said, "It is not necessary that everybody should always agree on everything. One can have divergent views. The decision to break the Grand Alliance was taken by Bihar JD(U) at its executive meeting which I had to abide by."

"The JD(U) is registered with the Election Commission as a regional party in Bihar and hence going against the decision of the state party was not possible for me," he had said and added that the JD(U) national executive meeting here August 19 would deliberate on the issue in detail.