"Some media (are) again resorting to spreading rumours. No question of forming government in Delhi. AAP has always sought re-election since resignation," AAP said in a tweet.
"It's an absolute lie that AAP MLAs are pressurising @ArvindKejriwal for forming govt at Delhi," senior party leader and former minister Somnath Bharti tweeted.
Delhi Congress also said it would prefer fresh elections and not form a government with AAP.
Its chief spokesperson Mukesh Sharma said AAP has no moral right to talk about formation of government in Delhi again after it went to the Supreme Court seeking dissolution of the Assembly and demanding fresh elections.
"There is no question of extending support to AAP to form government again. Arvind Kejriwal had deserted people of Delhi by resorting to theatrics. He had gone to the Supreme Court seeking dissolution of the House. We will not support the party again," Sharma said.
"Congress never withdrew support to AAP government. Kejriwal quit the government and left the people of Delhi in a lurch to gain political mileage in the Lok Sabha polls. As they did not succeed in the Lok Sabha polls, they are talking about forming government again," said Sharma.
Yesterday, at a meeting of senior party leaders, including former Chief Minister Arvind Kejriwal, nearly 20 AAP MLAs are said to have conveyed to the leadership that the party should make a fresh attempt at forming government.
Sources in the party said MLA Rajesh Garg mooted the idea while describing Kejriwal's decision to resign in February after 49 days in power as a major reason behind AAP's poor showing in the city in Lok Sabha elections.
Garg is said to have favoured government formation to spare the people from the fresh Assembly elections.
Sources in AAP said majority of sitting MLAs in the party did not want fresh elections immediately, thinking the "Modi wave" may flatten them all if polls are held anytime soon.
Lieutenant Governor Najeeb Jung had not favoured dissolution of the 70-member Delhi Assembly as recommended by the Council of Ministers and kept the House in suspended animation.