On the eve of Prime Minister Dr Manmohan Singh's [Images] meeting with Pakistan president Pervez Musharraf [Images] in New York, efforts are on in New Delhi to forge a new alliance in Jammu and Kashmir [Images] between the Congress and Omar Abdullah's National Conference.

"This has become necessary in view of the reports originating from the valley that Mufti Mohammad Sayeed may refuse to hand over the chief minister's post of Jammu and Kashmir to the Congress in November as per the agreement arrived between the ruling People's Democratic Party headed by Mufti's daughter Mehbooba Mufti and the Congress," a senior Congress leader told rediff.com in New Delhi late on Tuesday night.

According to party sources, Omar Abdullah's sister Sarah is playing a crucial role in patch up between the NC and the Congress.

Sarah's husband Sachin Pilot, Lok Sabha member from Dausa in Rajasthan is lending a helping hand.

Rahul Gandhi [Images] and Omar Abdullah were seen together in a party because of the efforts of the husband-wife team.

"Yes, I have seen news reports about their meeting in New Delhi sometimes back. But I would not say anything further on that," said Saifuddin Soz, Congress member of Rajya Sabha from the state.

Omar Abdullah denied that he had met Rahul Gandhi.

"No, I did not meet him," he told this correspondent.

But sources in the People's Democratic Party said that they were not unduly worried about the reports.

Neither Mehbooba Mufti nor Muzaffar Ali Baig was available for confirmation of the meeting or its fall out on the state politics.

This realignment of forces in the state assumes new significance in light of meeting between Mushraff and Mirwaiz Umar Farooq, chairman of the All Party Hurriyat Conference, in New York later this week.

Omar Abdullah had predicted early polls in the state. But Minister for Parliamentary Affairs Gulam Nabi Azad denied the reports.

No leader in the Congress is willing to go on record about the meeting between Rahul Gandhi and Omar Abdullah.

It may be recalled that National Conference had pulled out of National Democratic Alliance after the Lok Sabha polls, where it faired poorly.

National Conference had earlier lost majority in the state assembly in 2002 assembly elections.