New Delhi: The Aam Aadmi Party and Congress have ironed out differences and worked out an understanding to stitch an alliance for the Lok Sabha elections in Delhi and Haryana, highly placed sources said.

Congress has agreed to form an alliance in Delhi and Haryana with the Arvind Kerjiwal-led party, said sources. AAP will be contesting from four of the seven seats in Delhi and Congress will be contesting from the remaining three seats, the sources said.

The development comes after a lot of twists and turns between the two parties on whether to go for a coalition or not in the Lok Sabha polls.The AAP had wanted a coalition with the Congress in Punjab, Goa, Haryana and Delhi. As per sources, the talks are still on for Punjab and Goa.

AAP’s Rajya Sabha MP Sanjay Singh met PC Chacko, in charge of Delhi for All India Congress Committee, leading to speculations of a tie-up between both the parties on Wednesday evening.

Sources in both the parties claimed that the ruling AAP has proposed to provide two seats to the Congress party which instead has demanded three, being that of New Delhi, Chandni Chowk, and North East Delhi.