The power tussle in BJP led Karnataka government seems to be over, at least for now. After days of hectic parleys sources have told NDTV that according to a new compromise formula BS Yeddyurappa may continue as Chief Minister and Karnataka Rural Development Minister Shobha is may be dropped from Cabinet.

However, the compromise formula has yet to be accepted by the rebel groups. Sources have told NDTV that the compromise formula is facing a bit of opposition and there has been hardening of stand again.

Yeddyurappa on Thursday met leaders like LK Advani, Venkaiah Naidu, Sushma Swaraj and Ananth Kumar.

Senior BJP leaders are holding hectic parleys with the two factions one headed by Yeddurappa and the other led by the rebel Reddy brothers who want a change in leadership.

Earlier, the central leadership is believed to have told the Reddy brothers in no uncertain terms that Yeddyurappa will stay on as chief minister.

However, the CM has been asked to be flexible to demands of the rebels.

Earlier in the day, after a series of meetings with the BJP leadership, the latest one with Venkaiah Naidu, the Reddy brothers said they will not meet Yeddyurappa.

"I hope the high command listens to us in the interest of the party. I will not meet Yeddyurappa at all," he said after his meeting with Venkaiah Naidu.

The party has been struggling to find a solution to the ongoing tussle between the Karnataka Chief Minister and mining barons - the Reddy brothers.

Earlier, speaking to NDTV, Yeddyurappa expressed confidence that all issues would be resolved today. He also said he will stay on as the chief minister, but will accept whatever decision the high command takes.

"Ninety-nine per cent of all issues will be resolved today. We must sit together, discuss and resolve issues," he said.

Sushma Swaraj has held several rounds of discussion with the Reddy brothers, considered close to her, to find a way out of the crisis but no consensus has been reached.

The meeting has come at a time when the BJP leadership reportedly weaned away Assembly speaker Jagdish Shettar from the rebel camp. The Reddy brothers had propped up Shettar as their choice for the chief ministership.

The CM had a midnight meeting at the Taj Palace Hotel with rebel leader Jagdish Shettar, the man being projected by the Reddy camp as Yeddyurappa's successor. Senior BJP leader Anant Kumar acted as mediator. After the meeting he said infighting had hurt the BJP's image.

Earlier Yeddyurappa met Anant Kumar and Venkaiah Naidu separately.

Governor HR Bhardwaj, who was in New Delhi on Wednesday on a private visit, said he was keeping a watch on the situation and will act when it was necessary.

"All the confusion that has arisen will come to an end soon," Yeddyurappa had said in Hubli, Karnataka, before leaving for New Delhi.