The row between the two states is over conducting the Engineering, Agriculture, Medicine Common Entrance Test (EAMCET) this year.
Citing legal provisions, Andhra Pradesh State Higher Education Council had earlier said it had the power to conduct the test in both states as per Andhra Pradesh Reorganisation Act.
However, the Telangana government too had said it would like to conduct the test on its own.
Srinivasa Rao told reporters here today that Andhra Pradesh has been 'responsible and accommodative'.
"We don't have any egos on the issue concerning future of the students. We don't mind taking two steps back and are ready to accept the proposal made by you (Telangana). But we both (the two states) need to listen to what the Governor is suggesting," he said.
Similar differences had cropped between the states on conducting the Class XII examination, which ended with both states deciding to hold it separately.
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