The meeting took place at Raj Bhawan last night but details were not known.
"They had a two-hour dinner meeting and are understood to have discussed government formation and political stalemate in the state. The details of the meeting are not known," the source said.
PDP spokesperson Nayeem Akhtar said he was not aware about what transpired in the meeting.
The meeting came two days after PDP turned down the offer of support by NC for formation of government in the state.
More From This Section
After PDP rejected the offer, NC said the offer was limited to outside support and it had no intention to join the government.
The Assembly polls, whose results were declared on December 23 last, threw up a fractured mandate. PDP emerged as the single largest party with 28 seats in the 87-member House. BJP bagged 25 seats, NC 15 and Congress 12.
PDP President Mehbooba Mufti had met the Governor last month over the issue of government formation. She had dropped hints that her party is not averse to joining hands with BJP.
Governor's rule was imposed in the state on January 8 after NC leader Omar Abdullah resigned as caretaker Chief Minister.
The Governor had earlier set a deadline of January 19 for formation of the government.