"I am in the race and will contest this (2019) elections. I am fighting for the future of my children. It's a fight to save democracy," Dutt told the media.
The development came after Dutt, 52, on January 7 declared she would not contest the Lok Sabha polls as "it was time to take a break from active politics".
In a detailed statement, she said she had discussed the issue with Congress President Rahul Gandhi around November on her plans to "step out for a while" as she had made it clear in 2005. On January 7 this year she declared she wouldn't contest the Lok Sabha polls.
After a brief hiatus, Dutt is now likely to be nominated from the Mumbai North-Central Lok Sabha constituency, from where she was elected in 2004 and 2009 before biting the dust in 2014.
Earlier, the Dutt family's favourite seat was also held by her father, the late Sunil Dutt, who served as a Union Minister till his demise in May 2005.
Although Dutt had said she would continue to work for the party, she made it clear that she would not support anyone "her conscience does not permit".
Dutt's change of mind has reportedly been prompted after Gandhi recently prodded her to contest as the Congress was hard-pressed for a suitable counter to the Bharatiya Janata Party's outgoing MP Poonam Mahajan, insiders claim.
Daughter of the late actor couple Sunil Dutt-Nargis Dutt and sister of actor Sanjay Dutt, Priya lives in Bandra, with her husband Owen Roncon and their sons Sumair and Siddharth.
Sunil Dutt had the spectacular record of winning the Bandra Lok Sabha seat five times.
Many say she is quite a contrast to her starry brother who has had several brushes with the law. Unlike brother Sanjay, Priya did not take the plunge into Bollywood. Reports say she did make a small documentary but social work always remained her core area of work. The youngest of three siblings, Priya has been a popular figure among Congress workers in this party bastion in the western suburbs of Mumbai.
On 26 September 2018, she was removed from the position of Secretary of All India Congress Committee.
After her party’s dismal performance in 2017 Uttar Pradesh elections, Dutt had openly criticized the issue of infighting within the party that is marred by factionalism in several states. The tweet was also a veiled attack at the lack of unity in the Mumbai Congress unit. "Cong has shown repeatedly that it suffers from an autoimmune disease Cong destroys Cong we need to be treated from within to be healthy again."
Her husband Owen Roncon Jr is an event management consultant and they have two sons named Sumair and Siddharth.
(With additional information from IANS)