YSRCP is the main opposition in Andhra Pradesh, where the N Chandrababu Naidu-led Telugu Desam Party (TDP) is in power.
"TRS president and the Chief Minister decided to hold talks with YSR Congress party on the issue of joining hands for the federal front," a release from the party said.
TRS party's working president K T Rama Rao, senior leader and MP Vinod Kumar and general secretaries Palla Rajeshwar Reddy and Sravan Kumar Reddy were asked to hold discussions with Jaganmohan Reddy.
Accordingly KT Rama Rao and his team will hold talks with Jagan tomorrow (January 16)," it said.
KCR had stated "YSRCP is our friend if it does not align with Congress, BJP" .
After winning assembly elections in Telangana, chief minister KCR began month-long tour through several states to meet opposition leaders for a new alliance in december.
Andhra Pradesh, Odisha, West Bengal and Delhi were his first destinations in forging a new federal front. Recently he met with BJD leader and Odisha CM Naveen Patnaik.
TRS , which already has the support of Mamata Banerjee , will be focused on being the facilitator to leverage bargaining power with the congress once the election nears, as per the sources.
Reports also suggest that KCR will skip Mamata's rally showcasing opposition unity because of the presence of congress party sharing the same stage.
TRS MP B Vinod Kumar cited the political scenario in some states, including West Bengal, Odisha and Telangana, where, he said, regional parties were set to take on both the Congress and BJP in triangular fights in the next Lok Sabha polls.
The TRS returned to power in the December 7 2018 assembly elections, winning 88 seats in the 119-member Telangana Assembly, pushing the Congress to a distant second position with 19 seats.