He told reporters that the parliamentary board of his Jan Adhikar Party will meet tomorrow in Patna to decide "whether to contest all 243 seats, 100 seats or not contest at all".
Sources said Yadav had been looking at some tacit alliance with BJP-led NDA which has not materialised.
He, however, insisted that no final decision has been taken yet.
"Bihar has lagged behind in terms of development during the tenure of Nitish and Lalu, has become equivalent to abuse (in other states). Our priority is to save it from Nitish and Lalu. My party is ready to take whatever tough decision we are required to take. Whether to contest polls on all the 243 seats or not at all," he said.
Yadav was severe in his criticism of the Kumar-led grand alliance but refrained from attacking the NDA.
Terming the state chief minister and Prasad as "most corrupt" leaders, Yadav accused them of "betraying" Muslims.
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