The BJP is said to have agreed to part with two Assembly seats, out of the 14 allotted to it as part of the alliance, and also agreed to change its candidates in two places.
TDP and BJP leaders will hold another round of talks today to end the stalemate as the deadline for filing nominations for the May 7 elections ends tomorrow.
It may be recalled that TDP chief N Chandrababu Naidu expressed serious displeasure over the choice of candidates by the BJP in certain Assembly constituencies allotted to it.
"If they put up such weak candidates, it will only benefit the rival parties and weaken the alliance. It will also impact our prospects in the Lok Sabha elections," Chandrababu said in election meetings in Vizianagaram district last night.
He rushed back to Hyderabad late last night to sort out the issue even as BJP national spokesperson Prakash Javadekar too reached here and discussed the issue with TDP MP Y Satyanarayana Chowdary.
The TDP reportedly offered Rajahmundry Lok Sabha seat to the BJP, in addition to the four already given, in lieu of Ichchapuram, Rajahmundry Urban, Narsaraopet, Guntakal, Santanutalapadu and Tadepalligudem Assembly segments.
It asked the national party to change candidates in some other seats where it was weak.
The BJP is said to have agreed to part with only two Assembly seats, besides changing nominees in two other places.
Javadekar is expected to have a round of talks with Chandrababu before the latter leaves for Krishna district for campaigning.
Meanwhile, the TDP released its fourth list of candidates for 23 Assembly seats for the May 7 elections.
It dropped four of its sitting MLAs.
In Proddatur in Kadapa district, sitting MLA M Linga Reddy was dropped and the seat given to former MLA Varadarajulu Reddy, who defected from the Congress recently.
Controversial Kovvuru (SC) legislator T Rama Rao was also denied ticket this time while two others - Durga Prasad and Hemalatha - also did not figure in the latest list.