Deputy Chief Minister K E Krishna Murthy announced the decision after a meeting with Chief Minister N Chandrababu Naidu and TDP leaders from Kurnool district here.
Tomorrow is the last day for filing nominations.
YSRC has fielded Bhuma Akhila Priya, the daughter of MLA Bhuma Nagi Reddy, for the by-election, which became necessary by the death of party candidate and her mother Bhuma Sobha Nagi Reddy days before the Assembly elections in May.
"YSRC leader M V Mysura Reddy and others requested us not to field our candidate in Allagadda as they did not field their candidate in the Nandigama by-election last month. So we decided not to field TDP candidate in Allagadda," Murthy said.
Congress however has not yet announced whether it would put up a candidate, as it did in Nandigama. If it fields a candidate then election would become inevitable.
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