The three parties will now work out seat-sharing, he told PTI.
"RJD-LJP and Congress will fight the next Lok Sabha polls together in Bihar. Now the talks among the three parties are only about the number of seats each of us will contest," he said.
He dismissed reports in the media about LJP apprehending losses by aligning with RJD.
Paswan had earlier said that there are two views within the LJP on whether to align with Lalu Prasad's RJD or Nitish Kumar's JD (U) and that he had left this decision to Congress.
He met Congress President Sonia Gandhi yesterday for the second time in the last one month to discuss the issue of poll alliance in Bihar.
LJP sources said later that Paswan told Gandhi that his party will not talk to Lalu Prasad on the issue of seat-sharing, reflecting the unease between the two parties.
Paswan accompanied by his son and LJP Parliamentary Board Chairman Chirag Paswan had also made it clear to Gandhi that LJP, which had contested on 12 Lok Sabha seats, will like to contest on at least 10 seats this time.
Prasad had also met Sonia Gandhi once and Rahul Gandhi twice to discuss the alliance.
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